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Why should any company listen to "shareholders"? Shareholders don't think long-term. Shareholders prefer the immediate cash out gratification. Warren Buffett
by pm24601 11y ago
Why should any company listen to "shareholders"?
Shareholders don't think long-term.
Shareholders prefer the immediate cash out gratification.
Warren Buffett does not listen to shareholders for the same reason. They are not thinking about the business.
Unfortunately, too many CEOs think the same way -- immediate cash out, screw the long-term growth.
- calbear81 11y agoThe most basic answer is that the "shareholders" are the owners of the business. Shareholders do think "long-term" in the sense that they believe their capital could achieve better returns in other areas and hence the desire to "cash out".
- pm24601 11y agoThey are welcome to sell their shares anytime. Being a shareholder does not mean that a shareholder runs the business. A shareholder can sell their shares or vote for a different board. That is it.