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An activist investor is someone who buys into a company with the intent of reforming or changing it. Maybe you really hate twitter, so you buy into it for $200
by vorpalhex 5y ago
An activist investor is someone who buys into a company with the intent of reforming or changing it.
Maybe you really hate twitter, so you buy into it for $200 million and then use your power on the board to vote down anything good for twitter and vote for anything that is harmful.
Activist investors often don't act in line with financial interest, instead focusing on "activism" even if it costs money.
- sjtindell 5y agoDo you have any examples of activist investors who actually wanted to do harm to a company? I’m incredulous. What a waste of time and money. I usually hear about ones who think they can turn it around.
- riskable 5y agoHere you go: https://www.businessinsider.com/tim-cook-versus-a-conservative-think-tank-2014-2 https://www.businessinsider.com/tim-cook-versus-a-conservati...
- kodah 5y agoThat's not really an activist investor, more like a quarrel over priorities in a boardroom. Carl Icahn, and Bill Ackman are examples of activist investors. The key to being an activist investor is that you have to control enough of the company to be able to make decisions that would greatly change it. A single board seat doesn't really get you much. Secondarily, activist investors are usually seizing control of failing organizations, not successful ones.