article thumbnail

The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

Toyota has a class of shares that gives investors “loyalty dividends” if they hold onto them for five years. An informed shareholder, who looks beyond earnings numbers and analyzes the company’s intangible assets, would notice that the firm has mortgaged its future. Other proposals go further.

article thumbnail

Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business Review

This disconnect is a major problem for the continuing development of efficient capital markets. Collectively, the world’s investment giants hold in excess of $70 trillion in assets, which represents the bulk of investable capital globally. How is this state of affairs possible?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Apple, Lending Club, and AirBnB Know About Collaborating with Customers

Harvard Business Review

Through co-creation, companies can access a deep well of customer capabilities, knowledge and assets. Although the Net Promoter Score (NPS) is a market standard, customer promotion alone can’t sustain a co-creation model. Transactors : These customers have no loyalty to your brand.

CRM 8
article thumbnail

CVS’s Lesson: Carpe Diem

Harvard Business Review

And finally, highly reputed companies are more stable, which means they have higher market valuation and stock price over the long term and greater loyalty of their investors, which leads to less volatility. So why doesn’t every company do what CVS did?