Let me try to summarize everyone’s same question:
- The idea of a stock exchange that allows companies and investors to focus on 5, 10, 25 year horizons sounds great!
- However companies on normal stock exchanges now already try to do this, but it’s hard because of quarterly earnings, pressure for quarterly growth, etc
- How is LTSE different? Seems like: Companies and investors “promise” to have a longer term focus via planning
- seems like that wouldn’t be enough and the same financial pressures would result in the same focus
- We were expecting something like: “investors must hold positions for 10 years”, or, “earnings only reported every 2 years”, etc etc. but there’s nothing like that.
- So, what is the big idea, the teeth, the new rule, that makes long term focus enforceable?
- The idea of a stock exchange that allows companies and investors to focus on 5, 10, 25 year horizons sounds great!
- However companies on normal stock exchanges now already try to do this, but it’s hard because of quarterly earnings, pressure for quarterly growth, etc
- How is LTSE different? Seems like: Companies and investors “promise” to have a longer term focus via planning
- seems like that wouldn’t be enough and the same financial pressures would result in the same focus
- We were expecting something like: “investors must hold positions for 10 years”, or, “earnings only reported every 2 years”, etc etc. but there’s nothing like that.
- So, what is the big idea, the teeth, the new rule, that makes long term focus enforceable?