The Long-Term Stock Exchange Comes to Life
&quot;short-term pressures were driving their decision-making, often at the sacrifice of the long-term potential of the business.&quot;<p>This is a popular opinion, but I find it difficult to believe. It relies on the notion that stockholders are fools and unable to recognize when a company destroys its long term prospects for short term gain.<p>The trouble is, once the short term gain is there, who are the short termers going to sell to? A bunch of suckers?<p>And Wall Street richly rewards companies for long term behavior - there&#x27;s no other explanation for Amazon&#x27;s high P&#x2F;E.<p>Lastly, the stock market returns for the last 50 years are excellent. If the corporations were all sacrificing long term for the short term, how has such sustained growth been possible?