Why buy a company with a failing business, even if it is undervalued? There are three reasons: It might have valuable assets. The crowd often sells a stock based on its business alone, ignoring its cash and other assets. Many seemingly scary, bad, or boring businesses turn out to be less scary, bad, or boring than they seem. Poorly managed companies attract outside investors who might buy them or turn them around. This is what private equity firms and activists do for a living. But shareholders don’t have to wait on other investors. They have rights as owners, and they exercise those rights by
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