Inscrit le: 08 Mai 2016
| Posté le : Mar 27 Juin - 11:34 (2017) Sujet du message : Against #shortermism: A Few Lessons On The Importance Of A
Financial analysts and investors use a large variety of metrics to evaluate the attractiveness of investments in the stock market. Many characteristics -- including valuation metrics, financial performance and balance sheet soundness -- are used to evaluate the prospects of equity securities.
Yet, there is -- in my opinion -- a particularly important aspect of a company that is generally overlooked when evaluating the long-term attractiveness of its stock. This under-researched area of corporate quality is the culture of the firm. Corporate cultures have tended to become rather short-term oriented, which is blamed by some on the process they call "financialization."
"Shortermism" (or #shortermism as I discuss in this book) is the core problem, and financialization rather a symptom of it. A commitment to more of a long-term focus is already bearing substantial fruits at some of the most successful companies in the US. I believe that companies with strong cultures focused on long-term performance will increasingly be rewarded with higher valuations in the stock market.
Some early praise for Against #shortermism...
"Claudio has disrupted himself more than once in his successful career. By taking the right risks, capitalizing on his distinctive strengths and being discovery-driven, in particular, he became one of the leading investors in the emerging markets of Latin America. In observing Claudio interact with the C-suite, I had deep admiration, around his ability to drill down into the under-researched area of corporate culture. If you are serious about the long-term, Brocado's Against #shortermism is a must read."
-- Whitney Johnson, author, critically-acclaimed Disrupt Yourself: Putting the Power of Disruptive Innovation to Work, former Institutional Investor-ranked equity analyst.
When Claudio worked with me at El Torito, I encouraged him to follow his dream. Even back then, he was fascinated with the issue of corporate culture (and how it interacted with the long-term performance of stocks). Claudio moved on to the field of equity research. His success there was largely due to his keen attention to corporate culture. Financial analysts more often than not neglect questions that are harder to quantify (such as so-called ‘soft’ issues, like corporate culture).
Claudio is a very honest, personable, intelligent fellow. His grasp of the unique Starbucks culture (where he never worked, but as praised in his book) is both accurate and insightful. As for a first hand account, the importance of corporate culture at Starbucks has been consistently front and center from the day I started in 1995 to the present. This has clearly been reflected in both the company’s outstanding results and the long-term performance of its stock.
-- Michael Casey, Former CFO, Starbucks Corp.; Former President and CEO, El Torito Restaurants, Inc.
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