|
|
 |
|
|
| |
Article Archive: Burgundy
| No good deed goes unpunished | | 11/17/05 | | Burgundy | "Short-termism is not a victimless crime. It has been creeping up on us for years. In its earlier manifestations, it simply demanded earnings increases every quarter, and drove managements to give earnings guidance and sometimes to manipulate earnings. Later it made managers embrace compensation schemes like stock options that aligned managers with very shortterm oriented shareholders in seeking to pump up stock prices by any available means. And now, it appears that short-termism will increasingly affect the capital structure decisions and growth strategies that managers implement on behalf of their shareholders. These decisions are the very essence of stewardship and we wonder if shareholders are aware of what they might potentially be losing if companies end up remote-controlled by financial engineers. A company is not just an accumulation of assets and liabilities. It is a living organism with its own culture and rules, and it needs strong and committed leadership in order to thrive."
|
|
|
| |
|
|
|
| Disclaimers: Consult with a
qualified investment adviser before trading. Past performance is a
poor indicator of future performance. The information on this site,
and in its related newsletters, is not intended to be, nor does it
constitute, financial advice or recommendations. The information on
this site is in no way guaranteed for completeness, accuracy or in any
other way. More...
|
