How many companies have you seen focusing on long term value at the cost of short term results. I have not seen many.
Amazon's Jeff Bezos is a genius when it comes to building long term value and doing what is right for the customer.
Over and over again, I have seen company CEOs focusing on the quarterly earnings without dedicating enough time to look at longer term strategy and value. Unfortunately, it is not the fault of the CEO but the boards that judge the performance and the wall street which rewards and punishes based on the results. We have seen over and over again a company's market value going down by 50-60% just because the company missed the numbers even with a narrow margin. Companies depend on the public markets for capital. Company's require the high liquidity that capital markets can provide.
What is the solution to this problem? CEOs are stuck between relying on wall street for capital and are forced to compromise long term value for short term results.
Any comments welcome....
Amazon's Jeff Bezos is a genius when it comes to building long term value and doing what is right for the customer.
Over and over again, I have seen company CEOs focusing on the quarterly earnings without dedicating enough time to look at longer term strategy and value. Unfortunately, it is not the fault of the CEO but the boards that judge the performance and the wall street which rewards and punishes based on the results. We have seen over and over again a company's market value going down by 50-60% just because the company missed the numbers even with a narrow margin. Companies depend on the public markets for capital. Company's require the high liquidity that capital markets can provide.
What is the solution to this problem? CEOs are stuck between relying on wall street for capital and are forced to compromise long term value for short term results.
Any comments welcome....
