Quote Originally Posted by Cvillehoops13 View Post
So if I start a company and my goal is to be a Fortune 500 but I work things up so that I'm in the 500-600 range for several years that's no different than if the company went bankrupt?
I am struggling with the analogy.

I think that it's more like an executive comes into an existing company that has fallen upon hard times and turns the company around, but based upon the life-time body of work of said executive, there is no reason to suspect that the said executive will get the company into the Fortune 500.

At some point, the stock holders of the revitalized company begin to realize that the growth potential seems fairly limited and they have to decide whether they want to take the risk of hiring another executive to make it to the next level.

This happens all the time in a business and what happens is that the stockholders either sell their stock (see Ivy League football) or keep hiring a guy until they get the right one (see VT in football).