Thread regarding CVS layoffs

Here’s Why Vltava Fund Sold Its Stake in CVS Health Corporation (CVS)

Great article where the investment firm talks about what they hoped for with Karen and team and why they sold it all.

https://finance.yahoo.com/news/why-vltava-fund-sold-stake-102058409.html

Great quote " In any case, we regard CVS to be our biggest buying mistake of recent years. In the hands of more capable management and with a rational allocation of capital, CVS stock could be at three times its price today. In this instance, we underestimated the negative impact of the human factor on the value of the company. This is a very important lesson for the future."

by Anonymous
| 1211 views | | 3 replies (last July 5, 2024) | Reply
Post ID: @OP+1tlxzpYx
Comment! It's anonymous!

3 replies (most recent on top)

@1mtw+1tlxzpYx More like the motto is "Get rich or die trying!"

by Anonymous
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Post ID: @1uiq+1tlxzpYx

Point by point reply.

  1. You are spot on with culture of retaliation. Ever wonder why Dan Finke, old Aetna hand, leaves to spend more time with his family and they decide to then go all in on Medicare and offer super low rates?
  2. Shoplifting is a problem for sure. I wouldn't say 'supports' but they won't discuss as it is not what DEI says would happen.
  3. Fraud and this is my take is that management is so far removed from the business. CVS people ran the show and knew what a retail store was all about. Karen, and her new people, do not understand retail.
  4. No argument they seem to get paid no matter what.
  5. I'd say low integrity is the result of hiring people based on them agreeing with your world view and willing to agree with your words.

There has to be a happy mix of being a good human being and running a good business. It sure is not found in the CVS leadership as it stands. New motto is Get Rich and Maybe Save the World.

by Anonymous
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Post ID: @1mtw+1tlxzpYx

The Analysts look at all of the data. It is key to evaluate human factors critically. The problem here is the lack of opposing views. The minute someone in Upper Management says something, everyone runs to agree and congratulate them. No one is teasing out the problems.

  1. There is an overriding culture of retaliation.
  2. Shoplifting is a problem and Management supports the shoplifters.
  3. Fraud is a problem and Management supports the Fraudsters.
  4. Management uses Complexity to extract larger pay packages when the enterprise would be better off with simplicity.
  5. The Enterprise favors those with low Integrity.

These are serious issues. The profit margin is awful. Borrowing money to pay a dividend is d-mb. Share buybacks are not possible when the enterprise is poorly run. Activists aren’t interested in this dog. A board seat won’t help a group that is convinced that they are on a sinking ship.

by Anonymous
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Post ID: @1aex+1tlxzpYx

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