Abstract

In their 2014 article in Harvard Business Review, Dominic Barton and Mark Wiseman write that “big investors have an obligation to end the plague of short-termism.” This article supports their assertion by showing that, logically, real investing (as opposed to trading) is inherently wealth creating and long-term in nature. However, powerful short-term forces stand in the way of this kind of investing. The article provides evidence that when these short-term forces are neutralized, executing long-term investment strategies that generate positive multi-decade excess returns becomes a realistic possibility.

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