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What’s actually happened is that activist investors have bought their way onto the boards of highly profitable companies with insufficient poison pills and made
by KerrAvon 2y ago
What’s actually happened is that activist investors have bought their way onto the boards of highly profitable companies with insufficient poison pills and made them fire some percentage of workers under the guise of making the stock price go up.
Does worker happiness matter at all, or is it OK to have a net miserable company where the bottom line is slightly higher profit than it would otherwise have been if the environment were a pleasant place to work? Because that’s the tradeoff here; rabid billionaire investors are unhappy because numbers aren’t as high as they could be.
- deviantbit 2y agoActivist investors are a problem. Most recent activist investors have been centered around climate and DEI. Exxon had activist investors try to get on the board. There was a lawsuit over it, I believe it was Arjuna Capital. Whoever is funding these activist investors, probably a nation/state, is doing it on purpose. Natasha Lamb has to be the dumbest investors to ever live, next to Cathie Wood, IMO. You could invest in an S&P index fund and perform better at 264% for the past 11 years, compared to her 132% realized, and taking far less risk. I get everyone has their idealistic views of how the world should work, but capitalism dominates every other society, providing better living standards, and security. It is unfortunate we have had leftists in the Democratic party take control of it, and pushing some very strange agendas, that doesn't reflect reality. These strange agendas have been exploited by other nations, like China. Some activist investors have brought better function management and boards. Carl Icahn is a great example. But he has also brought his fair share of problems.