Longterm value should be prioritized over short-term profits from "summary" of Reimagining Capitalism in a World on Fire by Rebecca Henderson
In today's fast-paced world, where quarterly earnings reports can make or break a company's stock price, it can be tempting for businesses to prioritize short-term profits over long-term value. But this approach may not be sustainable in the long run. When companies focus solely on maximizing short-term profits, they may overlook investments in innovation, employee training, and environmental sustainability that can create long-term value. This myopic focus on the next quarter's results can lead to decisions that harm a company's reputation, damage relationships with stakeholders, and ultimately erode its competitive advantage. Prioritizing long-term value, on the other hand, requires a shift in mindset. It means thinking beyond the immediate financial gains and considering t...
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