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> I'm looking specifically at the meme that public companies are somehow required to maximize short-term profits for their shareholders. I love that meme for h
by xondono 6y ago
> I'm looking specifically at the meme that public companies are somehow required to maximize short-term profits for their shareholders.
I love that meme for how wrong it is. Public companies don’t maximize short-term profits, maximize profits (with future profits discounted).
The fact that to a lot of people “profits” == “short term profits”, reveals quite a lot about our assumptions and time preferences..
- refurb 6y agoIndeed. I can think of plenty of examples where companies strongly focus on long-term profits, I mean, if they don't it's likely the company won't exist. Now if someone said companies focus on continuous quarterly growth, and sometimes sacrifice a portion of long-term growth for short-term growth, I could agree with that.