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Article: Managing for shareholder value in the age of Internet-based electronic design.(Company Business and Marketing)
- Article from:
- Electronic Business
- Article date:
- March 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Stock price is a consequence of an impersonal force-investment--supplying capital to the sources of greatest risk-adjusted return. Investors in the aggregate are representative of that force. As such they will never lie. They may get confused in the short term, but as soon as the true lay of the land becomes clear, they will adjust their investments accordingly. In other words, you can trust investment to be unflaggingly self-interested.
More important, however, you can trust investment to be right. That's because investing is an inherently Darwinian exercise. Poor investors lose capital and lose the ability to raise more, whereas good investors increase their ...