Quote:
Originally Posted by roachboy
it has been routine for firms to concentrate entirely on quarterly shareholder profits in that shangri-la that was neoliberalism.
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I think the premise here is generally false. True, there is an emphasis by some on short-term results, however if we look at the companies in S&P 500 as an example we will find that the overwhelming majority of these companies have an interest and focus on long-term results as evidenced by new product development, R&D, capital expenditures, and even investments in inventory and exploration (for companies in the business of natural resources). S&P 500 companies building long lasting and sustainable profitability do not entirely focus on quarterly shareholder profits.
Then if we look at companies in the Russell Small Cap index as an example, small cap companies, in some cases by definition they are not focused on quarterly shareholder profits because for some of these companies there are no profits and there focus is on growth or market share, not profits.
Then if we look at privately held micro-cap companies, perhaps those with venture capital investors, we will find even less emphasis on quarterly shareholder profits. In some cases the focus is simply on packaging the company for an IPO, which may take years.
Then if we look at "mom and pop" type companies, many of these companies focus on cash flow and net worth (capital gains upon sale) more than they will focus on quarterly profitability.
The premise held by Roach is somewhat of a myth or an exaggeration of reality.
P.S. - Already been told that my view is (fill in the blank), so we can spare that and respond to the point of my post.