Oh no. What a shame that all the companies you worked for were acquired. You were very lucky to get severance and retiree medical. Not many people were that lucky. The unluckiest ones were those whose companies were acquired in leveraged buyouts--now euphemistically called private equity--and who lost their jobs and benefits and the companies ended up in bankruptcy court.
Thank you once again for a thoughtful article.
The discussion about whether mergers and acquisitions create or destroy value reminded me of the mid-1980s when I worked as a reporter at Mergers & Acquisitions Magazine in Philadelphia. The editor, a brilliant and eccentric journalist who also taught a course on M&A at the Wharton School, started a newsletter called Corporate Restructuring, and we tracked what companies were doing. Using the company's huge M&A database, we collaborated with a professor at Wharton on event studies to track what happened to the stock price of companies in the days leading up to and after the announcement of a merger or acquisition.
You won't be surprised to learn that the stock price of the acquiring companies fell and the stock of the target companies generally went up.
At the time--during the Reagan free market era--the SEC's chief economist was Greg Jarrell, who later taught at the University of Rochester, and was a proponent of M&A activity--and a founding member of the "Shadow SEC" along with Merton Miller and some other economists whom I forget.
It became clear by the 1990s that companies were better off focusing on their core business and divesting unrelated businesses and we saw a lot of tax-free spinoffs, where a company was spun-off as a tax-free dividend, split-offs, where a company did a partial IPO of an unrelated business, and straight-up divestitures.
I believe ITT Corporation, under Harold Geneen, was the archetype example in the 1960s of companies becoming diversified conglomerates.
That backfired. The stock market rewarded those companies that returned to their core businesses.
Warren Buffett is brilliant, but not always right. Companies should stick to their knitting.
Thanks for starting this conversation, Jonathan. I'm grateful many of my dreams have come true. I'm Living the American Dream As an immigrant, living the American dream meant owning my home.
I was 32 when I became a homeowner of a tiny duplex, while most of my other single female friends still rented. Over the years I traded up to a single-family home. I can't imagine any 20 or 30-year-olds buying homes these days. I was lucky enough to cover Wall Street as a financial journalist in the 1980s, and then for nearly two decades as a Washington reporter covering the intersection of politics and policy until the Great Recession, when my fairy godmother plucked me out of journalism just as many publications cut back and laid off reporters. I wanted to travel the globe but I didn't have much money back then, and I squirreled away my savings to visit my aging and sick parents in India every year. My mother just turned 97 a few months ago, and I'm grateful I was there to celebrate her birthday. When I turned 60, Me and Bobby McGee's "Freedom's just another word for nothing left to lose" became my anthem. I stopped saying "some day I will do this or that.." and started crossing items off my list. I visited Santa Fe, Vienna, Prague and Salzburg, the French Alps. I returned to my favorite cities--Paris, London and Oxford. In a few months I'm heading Down Under. So what dreams did I let slip away? I wanted to be marry and have children, but that didn't happen. When I moved to Washington in my early 30s, friends warned me that there were six times as many women in the DMV area than men, and dating was tough. Much tougher than I imagined. My dreams have also evolved over time. Now, as I look ahead to retiring in a couple of years at that magical birthday of 70 when I hope to collect the maximum Social Security benefit, I'm ready to finish that collection of short stories I put aside a couple of decades ago, improve my birding skills, and welcome my siblings' grandchildren.
Thank you for sharing your story about your friendship. You are truly lucky to have had such a special lifelong friendship. I intended to bequeath gifts to a few close friends and family. But, since they're my age and I don't know who will go first, in recent years I decided it would be more meaningful to give those gifts while I'm alive. I gave my mother's gold bracelet to a close relative on a special birthday, and an expensive piece of china to a special friend this year. It has given me great joy to see them both enjoying their gifts.
Dear Jonathan, I am so sorry about your diagnosis. I've been a huge fan ever since your days at The Wall Street Journal, and even though we've never met, I feel as if you're an old friend. Thank you for all your wisdom and generosity over the years. Sending prayers for you and your family.
Comments
Oh no. What a shame that all the companies you worked for were acquired. You were very lucky to get severance and retiree medical. Not many people were that lucky. The unluckiest ones were those whose companies were acquired in leveraged buyouts--now euphemistically called private equity--and who lost their jobs and benefits and the companies ended up in bankruptcy court.
Post: How Deals Hurt Returns
Link to comment from April 4, 2026
Thank you once again for a thoughtful article. The discussion about whether mergers and acquisitions create or destroy value reminded me of the mid-1980s when I worked as a reporter at Mergers & Acquisitions Magazine in Philadelphia. The editor, a brilliant and eccentric journalist who also taught a course on M&A at the Wharton School, started a newsletter called Corporate Restructuring, and we tracked what companies were doing. Using the company's huge M&A database, we collaborated with a professor at Wharton on event studies to track what happened to the stock price of companies in the days leading up to and after the announcement of a merger or acquisition. You won't be surprised to learn that the stock price of the acquiring companies fell and the stock of the target companies generally went up. At the time--during the Reagan free market era--the SEC's chief economist was Greg Jarrell, who later taught at the University of Rochester, and was a proponent of M&A activity--and a founding member of the "Shadow SEC" along with Merton Miller and some other economists whom I forget. It became clear by the 1990s that companies were better off focusing on their core business and divesting unrelated businesses and we saw a lot of tax-free spinoffs, where a company was spun-off as a tax-free dividend, split-offs, where a company did a partial IPO of an unrelated business, and straight-up divestitures. I believe ITT Corporation, under Harold Geneen, was the archetype example in the 1960s of companies becoming diversified conglomerates. That backfired. The stock market rewarded those companies that returned to their core businesses. Warren Buffett is brilliant, but not always right. Companies should stick to their knitting.
Post: How Deals Hurt Returns
Link to comment from April 4, 2026
Thanks for starting this conversation, Jonathan. I'm grateful many of my dreams have come true. I'm Living the American Dream As an immigrant, living the American dream meant owning my home. I was 32 when I became a homeowner of a tiny duplex, while most of my other single female friends still rented. Over the years I traded up to a single-family home. I can't imagine any 20 or 30-year-olds buying homes these days. I was lucky enough to cover Wall Street as a financial journalist in the 1980s, and then for nearly two decades as a Washington reporter covering the intersection of politics and policy until the Great Recession, when my fairy godmother plucked me out of journalism just as many publications cut back and laid off reporters. I wanted to travel the globe but I didn't have much money back then, and I squirreled away my savings to visit my aging and sick parents in India every year. My mother just turned 97 a few months ago, and I'm grateful I was there to celebrate her birthday. When I turned 60, Me and Bobby McGee's "Freedom's just another word for nothing left to lose" became my anthem. I stopped saying "some day I will do this or that.." and started crossing items off my list. I visited Santa Fe, Vienna, Prague and Salzburg, the French Alps. I returned to my favorite cities--Paris, London and Oxford. In a few months I'm heading Down Under. So what dreams did I let slip away? I wanted to be marry and have children, but that didn't happen. When I moved to Washington in my early 30s, friends warned me that there were six times as many women in the DMV area than men, and dating was tough. Much tougher than I imagined. My dreams have also evolved over time. Now, as I look ahead to retiring in a couple of years at that magical birthday of 70 when I hope to collect the maximum Social Security benefit, I'm ready to finish that collection of short stories I put aside a couple of decades ago, improve my birding skills, and welcome my siblings' grandchildren.
Post: Dreams I Had
Link to comment from June 8, 2025
Thank you for sharing your story about your friendship. You are truly lucky to have had such a special lifelong friendship. I intended to bequeath gifts to a few close friends and family. But, since they're my age and I don't know who will go first, in recent years I decided it would be more meaningful to give those gifts while I'm alive. I gave my mother's gold bracelet to a close relative on a special birthday, and an expensive piece of china to a special friend this year. It has given me great joy to see them both enjoying their gifts.
Post: My Inheritance
Link to comment from September 29, 2024
Dear Jonathan, I am so sorry about your diagnosis. I've been a huge fan ever since your days at The Wall Street Journal, and even though we've never met, I feel as if you're an old friend. Thank you for all your wisdom and generosity over the years. Sending prayers for you and your family.
Post: The C Word
Link to comment from June 15, 2024