It's the whole BS idea of growth instead of sustainability that's literally destroying the world. Our society is obsessed with the idea that every company must grow and continue to make increasingly larger amounts of money, that more and more land should become developed, and every home should become larger with more and more possessions inside of them.
It's UNREALISTIC. There are finite resources and a finite amount of space on this planet.
You clearly don't understand the economy.
Something is always growing. In order for something to grow, something else is likely declining. This isn't 100% true, but it's pretty close. As DVD sales grew VHS sales declined. As mp3 sales grew CD sales declined. As the internet grew newspaper sales declined. As an aside, this relates back to the "substitutes" discussion. As computer sales rose TV viewership growth declined. Computers are therefore a substitute for television.
Now, if you're an investor, the audience DeMatteo is addressing here, where do you want your money? Do you want it in something declining? Of course not. Do you want it in something sustaining? Not really. You want it in something growing. There's always SOMETHING growing, and if you put it there your money will grow. Elsewise it's better off in a bank.
So of COURSE he'd making excuses for not growing! He needs to say "listen, bad quarter, we'll do better next time" otherwise investors will pull their money from him. Sustaining is good for small companies run by their owners. For publically traded it's growth or bust.
Seriously, would you invest in a company if you knew they'd simply sustain their stock price and not grow?This comment was edited on Aug 20, 2009, 16:39.