tag:blogger.com,1999:blog-33693245.post3425992503520438909..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Jack Welch lashes out at focus on 'shareholder value'The Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-23384367641983530192009-03-14T15:37:00.000+05:302009-03-14T15:37:00.000+05:30To start on a lighter vein, JW only talks about sh...To start on a lighter vein, JW only talks about shareholder value as the dumbest idea NOT share value. Be that as it may, no CEO worth his salt will be a leader of any substance if he or she sees the share price as day trader does! So, if shareholder value has outlived its usage, what measure will take it place? One thing which the hawk eyed Buffet says he watches in respect of any business is its product and services - do they excite the present and prospective customers? will you as an investor buy those products and services as your first choice? will you buy anything else that the business may bring to the market? Put in a different way, Peter Lynch once said that businesses which continue to produce desirable products (add services if you want) and there is a growing market, you have a winner at hand. I guess each of these, desirable products (market share?)and growing market, is measurable. Sure, they are not as prone for analytics as share price is. Well then, who wants the entire business world to be taken over by 'quants' seeing what it has done to the present world!Anonymousnoreply@blogger.com