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If a company focuses on the short term to the detriment of the long term, the investors will figure that out and the stock will tank. The only way short term-is
by skookumchuck 8y ago
If a company focuses on the short term to the detriment of the long term, the investors will figure that out and the stock will tank. The only way short term-ism can be profitable to shareholders is if the people selling at the high have inside information that the company is hollowed out.
I seriously doubt that subterfuge can be perpetrated successfully quarter after quarter.
- andrekandre 8y agofor any particular company, it (big payout for executives) only has to happen once, after that they (execs) can leave/retire/sellout take any particular company and multiply it by the size of the whole market and you see what we see today: short term thinking across industries, LBOs, big bonuses for executives even in failing companies (toys r us etc) so, while in any one particular company, yes shareholders wouldn’t put up with that behavior long-term, across the whole market they still get payouts, still have more stable investments that pay dividends etc even if there are those bad actors that wreck companies for thier own will slightly off-topic, but, for every company that maximizes it’s short-term value, there is usually collateral damage to the people who work there (and thier families), sufferimg low wages, bad conditions, mass layoffs)...that to me is the real issue...