{"id":10015,"date":"2021-02-07T22:17:55","date_gmt":"2021-02-07T22:17:55","guid":{"rendered":"https:\/\/swissfinanciers.com\/?p=10015"},"modified":"2022-11-15T12:30:24","modified_gmt":"2022-11-15T12:30:24","slug":"the-perpetual-company","status":"publish","type":"post","link":"https:\/\/swissfinanciers.com\/de\/the-perpetual-company\/","title":{"rendered":"Die ewige Gesellschaft"},"content":{"rendered":"
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In this time of crisis, we systematically wonder about its causes, which are many. These include the low margins of the companies arising from laws promoting competition.<\/p>\n

The thin margin creates a lack of reserves, therefore a privilege of short-term over the long term. The reasoning is simple: there is no reason to think long term while we still doubt existing tomorrow.<\/p>\n

The urgent therefore takes precedence over the important.<\/p>\n

And if we rethink a fundamental element of capitalism without changing its foundations, because to date, it remains the best political system, or if one wants to remain critical, the least bad.<\/p>\n

This fundamental element is the company within the meaning of legal entity.<\/p>\n

According to the general idea and regardless of the huge failure rates, the company generally tends to grow, to become first, cash flow positive and then profitable.<\/p>\n

If we took away the hassle from its inception, the company could focus exclusively on quality instead of focusing on its own survival.<\/p>\n

Imagine a company organized like a foundation.<\/p>\n

Through an initial public or private subscription, the initial capital would be of a high amount, for example a hundred million dollars.<\/p>\n

Its annual budget including tax could not exceed his assets in cash multiplied by the annual interest rate as a percentage guaranteed by its banks collectively.<\/p>\n

By this formula we would create a company that I call perpetual, because apart from the imponderables such as liabilities or tax increases, the company could theoretically last for centuries or even indefinitely.<\/p>\n

As long as the inequality that says the operating budget must always be less than the risk-free income produced by the initial capital investment would be verified, there would be no risk other than the risks attached to the investment of capital.<\/p>\n

If we imagine an investment in US Treasury bonds, that risk would be low to negligible. It would be limited to default in case of World War. Moreover, that risk is insurable.<\/p>\n

Do You realize these competitive advantages of the Perpetual Company?<\/strong><\/p>\n

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  1. The management could always think long-term.<\/li>\n
  2. It would have endless bargaining power within its means.<\/li>\n
  3. Thus it would never have to accept a compromised deal.<\/li>\n
  4. Its growth on the stock exchange would be steady.<\/li>\n
  5. Nobody would have to worry about the corporate existence.<\/li>\n<\/ol>\n

    I could go on and on for hours about the quality of this new kind of company.<\/p>\n

    Only two questions are left:<\/strong><\/p>\n

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    1. What do You think about it?<\/li>\n
    2. Who wants to make the first Perpetual Company with me?<\/li>\n<\/ol>\n

      After posting this article, I was told by the Best businessman I know that this had a \u201ccommunist\u201d flavor because it removed any kind of competitiveness and orientation towards objectives and rewards. After thinking about it for three weeks, I concluded that while his view had a very high merit from a different angle, nothing was preventing us to set short term objectives as interim achievements of a long term goal and to preserve competitiveness and rewards this way.<\/p>\n

      By the way, The (first) Perpetual Company is on its way to be built…<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

      In this time of crisis, we systematically wonder about its causes, which are many. These include the low margins of the companies arising from laws promoting competition. The thin margin creates a lack of reserves, therefore a privilege of short-term over the long term. The reasoning is simple: there is no reason to think long … Weiterlesen<\/a><\/p>","protected":false},"author":1,"featured_media":131216,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":0,"footnotes":""},"categories":[49,48],"tags":[],"class_list":["post-10015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lexicon","category-pubilcations"],"_links":{"self":[{"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/posts\/10015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/comments?post=10015"}],"version-history":[{"count":0,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/posts\/10015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/media\/131216"}],"wp:attachment":[{"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/media?parent=10015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/categories?post=10015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swissfinanciers.com\/de\/wp-json\/wp\/v2\/tags?post=10015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}