After saying what I’m going to say, I may not provide legal services to another public company again. But the odds of that happening anyway are remote. So I’ll say it: Investing in publicly traded stocks is unsuitable for all but those investors who can actually induce management to distribute the company’s cash to shareholders.
Consider the somewhat famous anecdote about Benjamin Graham, the co-author of “Security Analysis” and mentor to Warren Buffett. While running an investment firm, Graham discovered that Northern Pipeline a former Standard Oil operation controlled by the Rockefellers was trading at $65 a share, while paying a 6 percent dividend and holding $95 per share in cash assets in the form of matured railroad bonds.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
