How do we bring in long-term investors? By disdaining short-termism and managing the business for results over the long haul. That, at least, is the short answer in an interview of Tim Cook, CEO of Apple Inc., for the “World’s 50 Greatest Leaders” feature April 1 in Fortune:
“The kind of investors we seek are long term because that’s how we make our decisions,” he says. “If you’re a short-term investor, obviously you’ve got the right to buy the stock and trade it the way you want. It’s your decision. But I want everyone to know that’s not how we run the company.”
Seems like the ultimate free-market view: Investors and companies self-selecting, with short-termers attracted to companies that behave like momentum plays, and long-term investors drawn to companies that manage for the long haul and communicate as much.
So, can we get that done by next week?