Post by
Mexiurl on Aug 18, 2023 9:01am
Mergers, Takeovers etc.
Takeovers have always had an allure to investors, back to the 80's when there were plenty of them. You go to bed one night and wake up the next day to an extraordinary gain. So its part of the greed emotion, and Gordon Gecko succinctly coined the phrase 'Greed is Good, Greed works'. This kind of potential to get rich attracted many to the Investment Industry, including many of my peers. But in reality, most acquisitions, or takeovers happen under stressful conditions, or survival of the fittest. We see it every cycle in commodities, as survivors gobble up good assets at severely discounted prices. The oil industry in Canada is text book example. Anybody that ever speculated and lost, which is everybody, knows too well what pennies on the dollar feels like. Its the buyer getting a good deal, not the seller, most of the time. And buyers are patient. So when there is any mention of takeover, you gotta understand its rarely beneficial to the seller. And mentioning takeovers kinda reduces credibility in my eyes, big time.