Replying to Avatar Ben Eng

When a founder or major executive sells their shares, we consider this "capital consumption". Is a transfer of ownership really "consumption"? Maybe the productivity of that capital is diminished, if the key contributor is less invested in the company or separates entirely. Any better insights you can give on the concept of capital consumption?
Avatar
allen 2y ago

I don’t see that as consumption at all, it’s just trading financial assets. why would a founder be any different in this respect to any other holder of the equity?

Reply to this note

Please Login to reply.

Discussion

Avatar
Ben Eng 2y ago

That's what I struggle with in regard to Keith Weiner's warnings about capital consumption. I can see how mixing human intangibles (experience, know-how, expertise) makes capital productive, so that might be it.