Skip to main content

Investors' behaviour

Have people changed the way they look at incentives and are now more short term focused? It seems like people are still focused on making money as they always were. That is not an accusation, just a fact. Investor's ultimate goal was always a financial goal, whether that was measured by IRR, NPV, number of cars or else, a financial return is what it is. It is about making money. By nature capital is the end, not the means, therefore why would it care about second derivative outcomes. Why would money have to create jobs, new markets,breakthroughs?

But if attitudes have not changed why are the outcomes different?  

Transparency has increased people's visibility on how others make money and making a quick buck became more achievable but also more desirable. Town heroes used be those supporting the village with jobs and businesses, not they are the billionaires. Everyone would prefer to be a 'nice' billionaire but if not, a billionaire will do. Building s business used to be about creating an enterprise, creating jobs, being sizable. Today not all these variables matter, because investor's don't put a price or even discount having these as variables in the game. 

Question is - is the new generation part of the answer? The fact they value work life balance, social impact and making a difference in the world more than our generation did? It is noticeable that the new generation (not mine unfortunately) is caring whether the place where they work gives back, has opportunities for community involvement, allows time for personal developent. That means all those things, in time, will have a financial value, the opportunity cost of attracting talented employees or avoid loosing good customers. That could change the game rules.

Comments

Anonymous said…
By the bald guy ... Investors still only care about returns. But the manner in how the company is run has to be consistent with the needs of the work force, which also varies by country.
PS: proving I am not a robot is a big big pain!! Are you likely to get a lot of robots ;-) ?

Popular posts from this blog

It is official, I now like Malbec

Yesterday the internet in Argentina did not cooperate so no update. The day in Mendoza was great, with the nice and small family Vineyard of Altos de Hormigas being one of my favourites. They were very nice and the Malbec reserva the one that finally convinced me to like Malbec! We still had one more vineyard to go, Familia Zucatti, where we had a great lunch but the tours was already too much, we prefered to walk around on our own. But again, very different and very worth it! Today, we added Tevia to the group (after she came in my room at 5am) and repeated the Cemeterio since Tev and Shilps had not seen it, and then Malba. Surprise, surprise. Buenos Aires is not a small city but we still managed to run into Nitin and Ted in the Museum! We had a nice lunch with them and went for some more sightseeing in the afternoon. We went to Plaza de Mayo where the Casa Rosa is, walked down Calle Florida, the shopping street and up to Plaza San Martn for an excellent night view of the city. No

Cover Letters

When it takes you six hours to write a cover letter, what the hell happened? I can find a handful of explanations and let you decide i) I have a hard case to sell; ii) I am too full of myself and spending too much time praising my beloved skills and experience; iii) I don’t know the company well and need to spend hours educating myself first; iv) I am watching NCIS and House in parallel, v) I am a perfectionist. For the ones that know me best, I can bet you started with number v). Bernardo is clearly betting on number iv) though wondering why not my favourite Law & Order SVU. It is nice of you to think that but, even though it is true that those are pieces of me to blame, number i), ii) and iii) also apply. First, I do have a hard case to sell. As impressive at it may seem to have worked in Morgan Stanley, how do I guarantee that it is not because the market is down that I am not going back there. As impressive as it may seem to have worked on the ground in Mozambique, what does i

What would you do?

It is the new buzz word - or should I say sentence. What would you do if you were not afraid. I like to think I am not - I guess man or woman, we all do. But my answer to that question would not come blank for me - at all. And it is not being afraid because I am a woman, it is really because life can pose a threat big enough to some less expected things. The one that comes to mind today is ' I would write my book '. Note that I did not say I would write 'a' book but 'my' book. In fact I should probably even say 'one of them'. I think i have started 3 real ones by now, and 2 have a decent shot as well. But the reality I face is - what if no one wants to read it? Who will want to read what I have to say?  When I was a kid, I would write a ton of poetry. I wrote the first poem on record about the moon and the stars and as I received some first prize on my fourth grade, my parents found out about it. For many years, no matter what I bought as a gift for my d