Hi, here's some thought experiments again: Think of one “pry-it-from-my-cold-dead-hands” stock that you own, which has good fundamentals, wide moats, good dividends and whatnot. If some black swan events caused it to lose 50% market cap, will you continue to hold? Since your time horizon is 30-50 years, one would think one's holding power can even outlast a couple of world wars. You might even buy more of it!
However in short term, this stock is suffering and another company comes along and offers to buy it out at current price + 10% premium, and all proceeds returned to shareholders. This sounds good but it doesn't sound good to you, because you just lost 45% per share! How do retail shareholders deal with this?
With Apple's cash reserve, there are few companies within the strike zone, e.g. INTC, DIS, AMD, Ford? What happens to these companies' long term shareholders if the companies were sold at a discounted price?
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