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After 2001: Our Neotech World



Long-term appreciation of common-stock values will occur to the extent that management implements the mystic-free standards of capitalism. Conversely, long-term attrition of common-stock values will occur to the extent that management compromises capitalistic standards in implementing mystical-based decisions. ...Attrition of value is inherent to any business situation subjected to altruism, mysticism, or neocheating.

Before my words to you this day, the standards of capitalism had never been related to the value of a company in concise terms. The relationship of capitalistic standards to the common-stock value of a corporation can best be illustrated through an actual example of a large American corporation. You are a Senior Research Chemist for Du Pont. I want you to go home and write an open letter to the administrative management of E. I. du Pont de Nemours & Co., Inc.:

"But, I don't have any idea what to write," my father objected, standing up quickly, shocked and confused. But the mountain told him to go home and write anyway; the words would flow, the mountain Zon told him. So my father went home and sat at his desk with pad and pen. Indeed, to his amazement, in short order he knew exactly what to write. In fact, his pen could not move fast enough as he spent the rest of his day writing the following document:

A Proposal to Increase the Value of Du Pont Common Stock
An Open Letter to Those Responsible
for the Future
of the
Du Pont Company

To effectively present this proposal, the following four aspects around which the proposal evolves must be identified:

The need
The purpose
The principle
The proof

After identifying those aspects, the proposal can be presented in its proper context. The proposal will entail the following recommendations:

  1. Removal of specified executives who are undermining the value of Du Pont by building careers on deceptive mysticism and destructive neocheating rather than on honest thinking and productive efforts.
  2. Realignment of Du Pont's philosophy around specific, profit-oriented principles.
  3. Implementation of specified action designed to restore both the short-range and long-range profitability growth of the Du Pont Company.

The Need

Du Pont stock sold for $278 per share. Eleven years later, Du Pont stock had fallen to $92.50per share. Over 60% of the total corporate market value accumulated in 150 years vanished in a decade.

The Purpose

For 150 years, the management of the Du Pont Company increased the corporation's value at a remarkable rate. The common stock price increased many fold. Owners became wealthy. Du Pont expanded into the largest, most profitable chemical company in the world. What was the cause? The cause can be reduced to a single principle from which all economic values grow. This document will identify that principle.

Over the past decade, the owners of Du Pont (the stockholders) have observed with mounting disappointment the declining ability of management to expand the profitability of their corporation. What is the reason for that growing impotence? Many reasons have been advanced in business and financial publications. But management's explanations failed to deal with the crucial issues. And their mystical remedies by nature have accelerated the deterioration. The honest reason for the shrinking profit growth has never been publicly identified. This proposal will identify that reason. Moreover, implementation of this proposal would unleash a productivity/creativity cycle within the Du Pont Company that could generate values and profits outstripping any business enterprise on earth.

The Principle

This proposal is based on the following principle:

All Honest, Long-Range Profits and Societal Values
Generated by Business
Arise from the Mystic-Free Standards of Capitalism



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