Dollars and Jens
Sunday, July 29, 2007
Re: sum of the parts
I mostly agree with my brother; the Post probably could have created as much shareholder value by raising its dividend, possibly beyond its earnings, or buying back its own shares. But Dean is right that Fortune would not have been impressed, and I suspect the more likely alternative to buying non-synergistic companies would have been to waste money on investments in their core business.

Using that money to buy other companies for less than they're worth, as a certain textiles company started doing 40 years ago is much better. Though it should influence how you think about the company's management, and it might well be worthwhile for them eventually to spin off the subsidiary.

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