Strategy of both the companies is to buy companies, raise the price of existing products and slash the R&D. This increases the stock price in short term but in the long term only way to grow is to buy other company. This turns out badly when there are no more companies to buy and it turned out badly for valeant. I see BRCM going the same way. I hope QCOM continues to exist independently.
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I don't think avgo is valeant. There are some parelells where what avgo is doing is very typical of private equity companies similar to valeant. The thing that got valeant in trouble was the outright fraud with price gouging and shell companies to raid the insurance companies which is yet to be seen in avgo business model. Almost all private equity owned companies follow similar pattern .
Accurate
Agree with OP except...........there are plenty more companies to buy and raid.
Q failed in the last several years. AVGO can squeeze plenty more $$$ out of Q before its empty. Better to return that capital than continue to spend it on the execs and their jets and b---s--- projects.......Mirasol anyone ? As a shareholder, I want my $$. As employee, I'm outta here ASAP. Need work with soul and purpose.
Netflix - Dirty Money - Episode#3