Stingy Investor Contact - Subscribe - Login
  Home | Articles | Screens | Links | SNW | Rothery Report
 
Stingy News: 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."

The Stingy News Weekly

Article Archive

Submit a Story

  Topics
  Academia
  Accounting
  Banks
  Behaviour
  Bonds
  Books
  Brokers
  Christmas
  Crime
  Debt
  Derivatives
  Disaster
  Dividends
  DRPs
  Economics
  Economy
  Education
  Fun
  Funds
  Government
  Growth Investing
  Halloween
  Health
  History
  Indexing
  Law
  Management
  Markets
  Marketing
  Media
  Pensions
  Pricing
  Real Estate
  Retirement
  Science
  Stingy Investing
  SNW
  Stocks
  Taxes
  Thrift
  Trusts
  Value Investing
  Wealth
  World

Personalities
  Warren Buffett
  Benjamin Graham
  Charlie Munger
  David Dreman
  Martin Whitman
  Tweedy Browne
  James Montier
  John Dorfman
  Prem Watsa
  Francis Chou
  Walter Schloss
  Seth Klarman
  Nassim Taleb
  Robert Shiller
  James Grant
  John Bogle
  John Neff
  Bill Gross
  Dan Hallett
  Tim Cestnick
  Jason Zweig
  Norm Rothery

Article Archive
  2001
  2002
  2003
  2004
  2005
  2006
  2007
  2008
  2009
  2010
  2011
  2012
  2013
  2014
  2015
  2016
  2017

 
About Us | Legal | Contact Us
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...