4 ms·

There are lots of examples of CEOs making decisions for the future health of the company that are rewarded by Wall Street. The trope that investors only care a

There are lots of examples of CEOs making decisions for the future health of the company that are rewarded by Wall Street. The trope that investors only care about the current quarter profits is just bs. In fact in my experience future growth potential is rewarded a lot more by Wall Street than consistent profits.

SketchySeaBeast 4y ago
I think this point would be helped with some examples.
- creato 4y ago
  Amazon
- WJW 4y ago
  - Any form of R&D spending. Biotech companies are an extreme case of this, many making no money at all for years until they get FDA approval or go bankrupt. A lot of companies will invest in new development of new machines in order to gain an edge in the long run. - Any form of expansion into new markets. Will take a lot of cash to get started and may take years before it becomes successful. - Most marketing for brands that you already know, to keep them "top of mind". Nobody needs ads to know that Coca Cola exists, but they still spend a ton on marketing to maintain their brand image and make sure that people hear about them regularly.
  - kritiko 4y ago
    I said this in another comment, but the gp is talking about stock price, not profits. Your examples seem to refer to P&L.
    - sokoloff 4y ago
      I think that stock price and profits have a relationship with a positive coefficient over a long time horizon.