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For a few decades after World War II that attitude made sense: Companies in Japan, South Korea and Taiwan were so starved for capital that they plowed back earnings into R&D, automation and expansion.
His methodical personality;and his willingness to plow back profits;shows.
This plowing back of earnings is not insensitive to the judgment of investors: if the prospects of a company are good, investors bid up the price of its shares in the trading market and show a willingness to forego dividends for the possibility of long-term capital gains achieved through internal growth.
"Management is continuing to expand, replace old stores and plow back retained earnings into improving operations," she said.
Yet plowing back into such territory risks wasting the momentum of the Bali deal.
For example, by plowing back the proceeds of a hotel booking directly into the city.
They studied what happened to earnings plowed back rather than paid out and found that companies did a miserable job of investing them.
That's because companies whose shares are traded on a stock exchange retain a good share of their earnings to plow back into the business.
For the first few decades after World War II that attitude made sense: Companies in Japan, South Korea and Taiwan were so starved for capital that they plowed back almost every cent of earnings into R&D, automation and expansion.
Let's go to another benchmark of a good tech stock: How much of net income is plowed back into the business, which is crucial to generating future earnings.
Feder and comanager David Larrabee want to see profits plowed back into the business rather than returned to shareholders as dividends.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com