Originally Posted by
BlackPeter
Endowment effect is something amazing.
The company you own can only do well - will control all assets and keep reaping fat margins. Anybody else going into the same market though will not be able to survive because asset control is so dear and margins are so slim.
Just wondering how Synlait managed to convince lots of farmers to come across from Fonterra? Worked for them for a while, but oops - that's probably because Synlait is currently where Fonterra is already for a long time - deep in the pink fonts ...? No, stop - Synlait is deep in the proverbial because they came too close to ATM. Dangerous company ...
It is a tough life in your universe for anybody whose shares you don't own, isn't it :p)?
Problem is just - companies do not live in your universe but in the real world and are not impacted by your reasoning in various forums :): While your storyline might make you short term feel better, it closes your mind for seeing the other side of the coin.
If e.g. Nestlé, Danone or Unilever need A2 milk, they won't have any problems to get it.
Not saying who is right in this case, but ignoring clear and obvious risks for one's darling is in general a dangerous investment strategy.
Good luck with that.