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by WalterBright 256 days ago
Is that so unreasonable? Lots of people post that Wall Street corporations are dominated by short term, next quarter thinking. If that were true, then shorting those stocks would be a profitable plan. It seems reasonable to point out that if one is so sure corporations were going to tank because of short term thinking, they could get rich by shorting the stock.
1 comments
thequux 256 days ago
Alas, the market can remain irrational longer than I can remain solvent.
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WalterBright 255 days ago
Looking at a chart of the S&P 500 over decades, it's hard to see how anyone could make money by betting on corporations only being interested in short term results.
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Spooky23 255 days ago
The S&P 500 is a list. 80+% of the companies on that list when it started are no longer on it.

Betting on business in general over long time periods tends to be a winning proposition. Betting on an individual company tends to be less of a winner in general.

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WalterBright 255 days ago
Businesses do tend to fail eventually. Their business model become obsolete, the market for their product fades away, they strangle themselves with bureaucracy, they zig instead of zag. That isn't short-term-itis.

But you cannot grow a small company into a large one by concentrating on short term profits. The S&P 500 is composed of 500 large companies.

Imagine if you were selling MSFT short every quarter since they IPO'd in the '80s.

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