Investors Today Prefer Companies with Fewer Physical Assets

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When it comes to companies, there are many different things that a lot of investors prefer when it comes to companies in particular. However over time the things that investors have preferred when it comes to companies have changed. This article offers you the insight and a more in depth look into how investors today prefer companies with fewer physical assets.

Key Takeaways:

  • The companies that provide those services and enable us to share what we have (insights, relationships, assets) with others not only are valued more highly by investors but also are relatively asset-light themselves.
  • For many years it was. General Electric, General Motors, Exxon Mobile, and Walmart were able to use their scale and size to compete and grow.
  • Inventory depreciates and must be moved around. When geographic needs change, land is difficult to acquire or offload.

“The traditional asset-heavy corporations that used to be at the top of everybody’s most-admired lists are starting to look old-fashioned, slow-moving, and inflexible — particularly to investors.”

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