Actually, I bought one share of Warren Buffett's stock, probably 35 years ago, in order to read his letters.
The workmen in a factory may have a shadowy, unknown absentee "employer" - the thousands of individual owners of stock - whom "management" represents and tries to please by extra dividends. The workman's livelihood is at the disposition of strangers who make a single demand of their representatives: higher profits.
We have an obligation to provide a return for our shareholders.
I have never applied for a share in Tehelka.
Companies are returning a lot of money to shareholders through dividends and buybacks. And a lot of people say that's not a good use of capital. I think that's normal reallocation of capital.
Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.
If you're an investor who wants a little bit more from the capital-appreciation side of things, but still likes this concept of getting 'paid by the company,' then we would tell that investor to pursue shareholder yield.
When you face the shareholders, then you can feel the heat is on you. For 20 years I got to answer to my shareholders. It's not easy.
Companies prefer to put money in the pockets of shareholders or to hoard cash rather than to raise wages or invest.
