In a speech that offers one of the best (though of course rare) defenses of capitalism (sad that we have to constantly defend it), Danny DeVito explains the social benefits of what companies like Bain Capital do.
Setting the scene: Danny DeVito plays Lawrence Garfield, chairman and CEO of Garfield Industries. He's earned the name "Larry the Liquidator" because the objective of his investment firm is to purchase companies with asset values that exceed the stock capitalization of the firm and sell off the assets. So if a company's market cap is, say, $1 billion and the assets are worth, say, $1.2 billion, buy controlling interest in the firm and sell off the assets, reaping a 20% return on your investment.
Garfield Industries has targeted New England Wire and Cable, a cable manufacturer that is struggling in light of creative destruction - fiber optics. The speech is at the shareholder's meeting, where Larry the Liquidator is seeking to convince the other shareholders to vote for his slate of directors. On the opposing side is Andrew Jorgenson, CEO of New England Wire and Cable and the grandson of its founder, played by Gregory Peck. He pleads with the shareholders to protect labor and the existing mission of the firm.
If you haven't seen this, it's worth watching.
