Thodey's Telstra plans have huge implications for shareholders

Telstra's historic returns have been attractive to shareholders, but if the group is to profit over the long term it has to invest in growth.

Should Telstra be an income or growth stock? Shareholders want it to be an income stock and hand all its profits and balance sheet capacity in cash payments to them. That would be an unmitigated disaster, in my view.

Shareholders have a lot to thank chief executive David Thodey for, but one of his shortcomings is that he has not explained to shareholders that if Telstra is to prosper longer term it will have to invest in growth.   

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