View Single Post
ysss's Avatar
Posts: 4,384 | Thanked: 5,524 times | Joined on Jul 2007 @ ˙ǝɹǝɥʍou
#67
Originally Posted by eachna View Post
Well, I'm one. I don't buy a stock I want to sell in less than 5 years. The trading fees eat up too much of the profits if you churn through stocks in the short term. I don't have Nokia shares, but I have a modest stock portfolio in similarly sized companies.
Seriously, in this kind market?
If everything craps out again, you'll just buy more of NOK?

By their very definition, people who invest in a company for the short term are interested in short-term results. That's not to say that they're hostile to the company doing well in the long term, but it really doesn't matter to them one way or another. Would any short term investor care if Nokia blew up a year from now, as long as they sold their shares for a profit before that happened?
There are different kinds of investors with different horizons. But even the long term one should pay attention to a company's current well being.

They have to have short-medium and long term gameplans. You can't just bet the farm on a company's long term game plan when they're facing immediate risks.

They need to juggle between their current and long term needs all the time.

A CEO (or other board member) should not be making financial decisions in a company to cater to short term investors. Heck, not many short term investors even vote for board members (they often don't even hold the stock long enough to vote).
Again, that's the text book idealized case; but the fact is that CEOs, especially one who's in Elop's position need to make quick and immediate changes that show publishable performance. That's how the media works now; otherwise he may not get adequate support to complete his med-long term plans.

While a board does not directly work for the shareholders it's supposed to be responsible for managing the company to the general benefit of the shareholders. Fiddling with things to generate short term price fluctuations is not any healthier for a company's financial well-being than yo-yo diets are for a person's biologic health.
Yes, that's how things are supposed to work. Maemo was supposed to be a big hit too on step 5 of 5. And Jakssi was supposed to be the CEO.
__________________
Class .. : Power User
Humor .. : [#####-----] | Alignment: Pragmatist
Patience : [###-------] | Weapon(s): Galaxy Note + BB Bold Touch 9900
Agro ... : [###-------] | Relic(s) : iPhone 4S, Atrix, Milestone, N900, N800, N95, HTC G1, Treos, Zauri, BB 9000, BB 9700, etc

Follow the MeeGo Coding Competition!
 

The Following 2 Users Say Thank You to ysss For This Useful Post: