http://www.peridotcapitalist.com/2007/05/could-bancroft-family-reject-67-premium.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sat, 11 Feb 2012 23:26:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.peridotcapitalist.com/2007/05/could-bancroft-family-reject-67-premium.html/comment-page-1#comment-503 Chad Brand Wed, 02 May 2007 16:03:00 +0000 http://www.peridotcapitalist.com/?p=423#comment-503 These types of voting structures aren't that commmon. I don't think they will become more popular as time goes on, but it is definitely something that investors need to be aware of. I doubt anyone will buy GOOG, but by buying the stock you are essentially giving up your shareholder rights. You need to have complete faith in management to act on your behalf. In the case of DJ, they have never proved to have anyone else's point of view in mind. As for GOOG, it's too early to know how they will act, but it is an interesting point to consider. These types of voting structures aren’t that commmon. I don’t think they will become more popular as time goes on, but it is definitely something that investors need to be aware of. I doubt anyone will buy GOOG, but by buying the stock you are essentially giving up your shareholder rights. You need to have complete faith in management to act on your behalf. In the case of DJ, they have never proved to have anyone else’s point of view in mind. As for GOOG, it’s too early to know how they will act, but it is an interesting point to consider.

]]> http://www.peridotcapitalist.com/2007/05/could-bancroft-family-reject-67-premium.html/comment-page-1#comment-502 rs6 Wed, 02 May 2007 15:12:00 +0000 http://www.peridotcapitalist.com/?p=423#comment-502 How do you think this compares with Google - at the moment, shareholders must be extremely happy with the stock's performance, but how about when the inevitable downturn come around? The voting structure is one of the most restrictive, with the founders and a few key executives with almost all of the power. Do you think this sets a bad precedent that more and more public companies will follow? There is no way through voting that the shareholders can influence potential irrational financial decisions in this case either. How do you think this compares with Google – at the moment, shareholders must be extremely happy with the stock’s performance, but how about when the inevitable downturn come around? The voting structure is one of the most restrictive, with the founders and a few key executives with almost all of the power. Do you think this sets a bad precedent that more and more public companies will follow? There is no way through voting that the shareholders can influence potential irrational financial decisions in this case either.

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