SafeBank couldn’t raise VC or anything like that...
It also couldn't be a public corporation because share holders could make a very good case that management is failing its fiduciary duty by being hyper conservative.
And that's what I find most interesting about that article. It opens the discussion about public vs privately owned enterprise.
Privately owned business can forgo addition revenue by as much as the ownership feels like. The reasons for that don't have to be altruistic, it could be about longevity, not 20 or 50 years longevity but hundreds of years of longevity.
But we only live once, and our lives are short, so most of us like to maximize profits. Thus most often the risk vs. reward calculation doesn't look at time spans much longer then one human life time.
Interestingly public companies should be able to deal with long-term horizons much better than private companies. In theory a share's worth is equal to all future dividends discounted to the present day.
It also couldn't be a public corporation because share holders could make a very good case that management is failing its fiduciary duty by being hyper conservative.
And that's what I find most interesting about that article. It opens the discussion about public vs privately owned enterprise.
Privately owned business can forgo addition revenue by as much as the ownership feels like. The reasons for that don't have to be altruistic, it could be about longevity, not 20 or 50 years longevity but hundreds of years of longevity.
But we only live once, and our lives are short, so most of us like to maximize profits. Thus most often the risk vs. reward calculation doesn't look at time spans much longer then one human life time.