Gerstner warns excess capital distorts company behavior and makes efficiency difficult when all options can be funded.
“There is absolutely no doubt in my mind that excess capital distorts company behavior. Okay? And in particularly these early phases, it's very difficult.”
Gerstner argues excess capital distorts company behavior and makes it difficult to stay efficient when all options can be funded.
“It's not impossible, but it's very difficult to stay fit and efficient when you have a buffet of all options sitting in front of you and you can fund all of them.”