Some good ideas in here but not sure I agree with your buybacks vs. capital allocation analysis; and portions of your GE analysis.
Southwest mgmt was being rewarded for divs and growth drivers (more planes), not necessarily for their ability to assess software investment upgrade needs (and cost drivers).
Finally, you give management too much credit. Many Corp execs step into unconventional businesses; we expect them to continue zigging when others zag but that’s not who they are, so the business mean reverts back to wherever the fads/status quo is.
As an aside - you might consider toning down the blind embrace of capitalism as the wise would tell you it is not without its limitations, nor do we live in a perfect capitalist system. To wit - Jack Welch spent the last years of his life trying to walk back all the havoc he created.
Some good ideas in here but not sure I agree with your buybacks vs. capital allocation analysis; and portions of your GE analysis.
Southwest mgmt was being rewarded for divs and growth drivers (more planes), not necessarily for their ability to assess software investment upgrade needs (and cost drivers).
Finally, you give management too much credit. Many Corp execs step into unconventional businesses; we expect them to continue zigging when others zag but that’s not who they are, so the business mean reverts back to wherever the fads/status quo is.
As an aside - you might consider toning down the blind embrace of capitalism as the wise would tell you it is not without its limitations, nor do we live in a perfect capitalist system. To wit - Jack Welch spent the last years of his life trying to walk back all the havoc he created.