Home > humor, trends > Shareholder value, but at what cost?

Shareholder value, but at what cost?

As consultants, we’re always preaching (ad nauseam) about value. Grow revenue, reduce costs, grow margins etc. Fair enough: companies are not charities; they have to make a profit.

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But there seems to be an increasing backlash against obsessing against shareholder value at any cost (see Economist article about this here).

I think this is healthy. Allowing companies to step back, plan and invest over the long term (think years, not quarters) is often required. Companies who continue to do this (e.g. Apple, Amazon) will be the real winners. Companies who obsess over just what the analysts are saying, will end up creating no value in the long run.

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