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Showing posts from July, 2022

Managerial Decisions That Add Value and Drive Long-Term Performance

  Many investors cannot accurately define value if put on the spot. Even in an efficient market economy , one would be hard-pressed to find a manager, investor, or consultant who can quickly and succinctly place parameters on what makes a valuable company 'valuable'.   What is evident, however, is the notion that meeting quarterly earnings forecasts and boosting earnings-per-share makes a company 'valuable' or 'successful'. Unfortunately, this is a hamster-wheel-like mentality as accounting earnings measure performance in the short term.    Near-term results delight shareholders and arbitrage strategists only. All stakeholders must be taken into account when investigating total return (a mixture of growth, return on invested capital, market pricing and shareholder return), or the essential value that a company brings to the market.   How Do Companies Create Long-Term, Sustained Value Those looking for a complex explanation will just have to go elsewhere. The