GameStop CEO Ryan Cohen is now free to invest the retailer's cash in stocks, Warren Buffett-style - eviltoast

All of GameStop’s nearly $1 billion in cash is now at Ryan Cohen’s unilateral discretion.

RC can now use GameStop’s money to buy stocks of other companies, which may or may not involve any mergers or acquisitions.

What is really interesting and exciting about this, to me, is that it puts “our” money into his hands. It’s our money because we are GME investors, and shareholders are the owners of companies, and GameStop’s money is part of the shareholder equity that belongs to shareholders.

Ryan Cohen has a vision and a strategy, and access to valuable information, and he does not telegraph his strategy to the competition. We don’t know specifically what his intentions are, we don’t know specifically what his strategies are.

What we do know is that our interests are in alignment.

We shareholders are in alignment with the RCEO because he is also a (major) shareholder. If RC makes a move that benefits GameStop, it benefits all GME shareholders including himself and us.

If RC takes a strategic investment opportunity, we are all going along for the ride.

This is pretty great, in my opinion, because assuming that you trust RC, it means all a person needs to do is hold GME, and they will get exposure to whatever strategic investments that RC might make. As for me, I trust that RC has a better capability than myself to wisely invest in any non-GME assets.

  • ImFresh3x@sh.itjust.works
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    11 months ago

    Ryan cohen doesn’t need to be brilliant to turn 1 billion into 50 million in profit annually. Video game retail will not make them a profit. But that 50m will negate enough losses to appear profitable. But no one intended to invest a in a retailer that fails to profit from retail, and only profit from cash pulled from a miracle squeeze.

    People expected a MOASS years ago. They cheered for nfts and web3. None of those things will ever come to light. Now we are banking on a low return hedge fund. With a dog food twitter troll running the show.

    There is zero chance gme makes a profit in store. Or online.

    Used games. lol.

    Batteries. lol.

    Gift cards. lol.

    DD means knowing the the downsides. There is no DD in the gme cult.

    • jergy@lemmy.whynotdrs.orgOP
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      11 months ago

      I think you’ve misunderstood what I said. You asked if I saw how GameStop might be profitable, I provided a very reasonable answer. Anyway, everyone has their own opinion, at the end of the day no opinion really matters, what matters are the cold hard results, which we will see in March 2024.