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With some notable exceptions, in general, shareholders are not patient people. Their horizon is usually the next quarter's results. After all why keep your shar
by SeanDav 11y ago
With some notable exceptions, in general, shareholders are not patient people. Their horizon is usually the next quarter's results. After all why keep your shares in a company that is not making a "good enough" return, when you can easily them to the next company that is due to make outstanding returns.
I worked in the investment banking industry for many years, on both the buy and sell side and believe me - "long term" is not in most shareholder's vocabulary.
- WalterBright 11y agoOf course shareholders seek to maximize returns. There's nothing wrong with that. BTW, shareholders who churn their accounts tend to do poorly. That doesn't hurt other shareholders, though. But it does mean you don't need to heap further punishment on them.
- lmm 11y agoIf you work in the industry where you're talking to people who buy or sell, of course most of the people you meet will be the ones who buy or sell frequently. You'd never even know the buy-and-hold investors existed, because they're not the ones talking to an investment bank.
- SeanDav 11y agoAgreed, that is a factor, but give me some credit for knowing that. I stand by my original comment.