I think in one way you are overly ambitious. To save earth from pandemics and climate catastrophe, we don't need everyone thinking long-term.
If companies were managed for the long term, climate change would get solved in 5 year. Otherwise they will go bankrupt. They have the capacity to innovate, but there is no clearcut way to profit in the current quarter and Wall Street punishes execs who "miss" a quarter by investing in the future.
We DO NEED the captains of capital, the investors, thinking long term.
That's hard because they have 100 rules against long term thinking.
And they have set up casinos that reward bets on chaos 1000 times more than correct long term bets.
But it doesn't have to be this way.
Helping investors get rewarded for making good long term bets is somewhat better in private equities, where angel investors or Venture capitalists play. They use tools such as stock options and warrants which increase the upside of a good bet.
The same thing can be done for public stocks, but it rarely is. Dr. Patrick Bolton and Frederick Samama have written papers on "Loyalty Shares" which can protect public companies ability to execute a long-term business plan. (Such as SpaceX that wants to make a business out of going to Mars, which Wall Street would never permit.)
There is also a new stock exchange LTSE designed for companies that need protection from the Wall Street Casino to build a long term good business. (Long term stock exchange, LTSE).
One of the best long term investors, Warren Buffett has written a lot about "Buy low, sell never" strategy. The sad thing is that it's too easy for him when there is no competition.
I think in one way you are overly ambitious. To save earth from pandemics and climate catastrophe, we don't need everyone thinking long-term.
If companies were managed for the long term, climate change would get solved in 5 year. Otherwise they will go bankrupt. They have the capacity to innovate, but there is no clearcut way to profit in the current quarter and Wall Street punishes execs who "miss" a quarter by investing in the future.
We DO NEED the captains of capital, the investors, thinking long term.
That's hard because they have 100 rules against long term thinking.
And they have set up casinos that reward bets on chaos 1000 times more than correct long term bets.
But it doesn't have to be this way.
Helping investors get rewarded for making good long term bets is somewhat better in private equities, where angel investors or Venture capitalists play. They use tools such as stock options and warrants which increase the upside of a good bet.
The same thing can be done for public stocks, but it rarely is. Dr. Patrick Bolton and Frederick Samama have written papers on "Loyalty Shares" which can protect public companies ability to execute a long-term business plan. (Such as SpaceX that wants to make a business out of going to Mars, which Wall Street would never permit.)
There is also a new stock exchange LTSE designed for companies that need protection from the Wall Street Casino to build a long term good business. (Long term stock exchange, LTSE).
One of the best long term investors, Warren Buffett has written a lot about "Buy low, sell never" strategy. The sad thing is that it's too easy for him when there is no competition.