I’d like to share a different perspective on this. If a company has excess capital, they can either return it to shareholders in the form of dividends or buybacks or park it in a safer instrument like liquid funds / fixed deposits. If they go about investing in equity, they are only broadening the risk vector (capital market downturn) beyond their inherent business risks. Our job is investing, their job is doing business, not taking undue risks in capital markets.
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