What’s So Good About Long-Term Investors?
Did ministers ask what companies think before declaring that good investors are long-term shareholders? Ideas have been floated to give long-term shareholders more votes or to allow investors to buy more voting power, but perhaps it is the short-term shareholders who buy and sell that should be rewarded? Corporations need them. Shareholders who buy and hold for years might seem ideal investors. Directors get to know them and learn what sort of meetings and information they want. Fund managers better understand the business, ask more intelligent questions and are less likely to make hasty decisions after misinterpreting announcements. That an investor holds for a long time is a sign of confidence the directors are doing something right and boards may…
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