On Thu, 21 Jul 2011 17:15:57 -0700, Darren New wrote:

> On 7/21/2011 16:27, Jim Henderson wrote:
>> On Thu, 21 Jul 2011 12:06:13 -0400, Warp wrote:
>>
>>>   I have always wondered why companies seem to think so short-term.
>>
>> That's easy - they're public companies driven by quarterly earnings and
>> not much else.
> 
> Basically. The rich people have gotten so rich that their groups (i.e.,
> mutual funds) control most of the stock in most of the medium and large
> companies. And since the mutual funds don't really care if the company
> is around long-term (since there will always be other companies to
> invest in), they're more interested in forcing policies that will make
> the mutual fund look good at the cost of the companies the mutual funds
> invest in.

Yup. :)

Jim

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