Topic: 4) A Random Walk
The Christmas season is a time about giving to others. In some ways, it is also a time for people to fantasize about all the things you can buy with money. Imagine being able to buy:
- any company in the world
- all 5,000-some IT startups in the Silicon Valley
- your own country
- your own armed forces
- part of the biotech and pharmaceutical industry
The above items are a Microsoft business fantasy outlined in TheDeal.com. The possibilities are something just short of fantasy though as Microsoft prepares to pay out $32 billion (more than 40% of its total cash reserves) in a special dividend on December 2, 2004. It represents the largest cash dividend payout in history. If Microsoft executives and the Board can't find a better use for the money, then straight-up finance theory would say that the company should return money to shareholders as it is doing.
For once, let's all cheer for corporate governance!
Disclaimer: Steve is neither a Microsoft shareholder nor an employee ...
S4 Management Group