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How Amazon Trained Its Investors to Behave

Harvard Business Review

And while it has certainly burned many buyers of Amazon shares through the years — Amazon's stock price took a decade to get back to its 2009 peak — the long-run returns have been spectacular. With Amazon, though, nobody emphasizes EPS. In Morten T.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

It started with developing a proprietary Corporate Horizon Index. To construct our Corporate Horizon Index, we identified five financial indicators, selected because they matched up with five hypotheses we had developed about the ways in which long- and short-term companies might differ. rate for other companies.

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4 Ways CEOs Can Conquer Short-Termism

Harvard Business Review

Bertolini observed that many of his peers had been promising 15% earnings per share (EPS), even during the financial crisis of 2009. ” Bertolini and his team studied the industry and concluded that a reasonable target was no more than 6% EPS. . Bertolini knew that such unrealistic targets would create problems.

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