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by epistasis 1994 days ago
Shareholders are known for optimizing for short-term liquidity or value gain, because even if some shareholders have a long-term view, shorter-term holders can buy in and force their views.

However, in many cases this is in direct conflict with much larger value growth that requires a longer investment term. Or in conflict with valuing greater long-term stability over a quick short-term gain.
1 comments
ksk 1994 days ago
Yeah, that's how the game works. Its like democracy - people can and do vote for idiots.

When you accept outside funding in exchange for shares, control gets shared. Honestly, do we really need to debate this?

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epistasis 1994 days ago
You are the one who asked why it was bad. Why ask a question if you don't want to know or debate it? Was it purely rhetorical?
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ksk 1994 days ago
No, what I'm saying is not up for debate is the fact that control gets shared when you take someone else's money. Its a known framework in which everyone operates.

Your "shareholders are known for" is simply a BS talking point. Every person who has a 401K is probably a shareholder somewhere. All those hundreds of millions of people value long term stability too. Nintendo is not a penny stock.

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im3w1l 1994 days ago
It's a different thing to say "I value long term thinking" and acting that way, and rewarding long term thinking. It may be that people are simply too stupid to see that the ship is being hacked up for fuel, and thus they put their faith in the captain doing so.
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