Short-Termism: On the Way Out?
Earlier this month, a group of 28 big names from the business, legal, academic, and nonprofit world put out a paper called “Overcoming Short-Termism: A Call for a More Responsible Approach to Investment and Business Management.” Among the signatories, all of whom are members of The Aspen Institute’s Business & Society Program, are heavyweights like John Bogle of Vanguard; Warren Buffett of Berkshire Hathaway; Louis Gerstner Jr., formerly of IBM; and James Wolfensohn of the World Bank Group.
Short-termism “refers to the excessive focus of some corporate leaders, investors, and analysts on short-term earnings guidance, coupled with a lack of attention to the strategy, fundamentals, and conventional approaches to long-term value creation,” according to the CFA Institute. more








