The Case for Long-Termism

11 Pages Posted: 17 Sep 2014 Last revised: 26 Sep 2014

See all articles by Keith Ambachtsheer

Keith Ambachtsheer

University of Toronto - Joseph L. Rotman School of Management

Date Written: September 17, 2014

Abstract

In their 2014 article in Harvard Business Review, Dominic Barton and Mark Wiseman write that “big investors have an obligation to end the plague of short-termism.” This article supports their assertion by showing that, logically, real investing (as opposed to trading) is inherently wealth creating and long-term in nature. However, powerful short-term forces stand in the way of this kind of investing. The article provides evidence that when these short-term forces are neutralized, executing long-term investment strategies that generate positive multi-decade excess returns becomes a realistic possibility.

Keywords: Abductive Reasoning, Agency Theory, Asymmetric Information, Behavioral Finance, Fiduciary Duties, Investment Beliefs, Long-Term Investing, Pension Fund

Suggested Citation

Ambachtsheer, Keith, The Case for Long-Termism (September 17, 2014). Rotman International Journal of Pension Management, Vol. 7, No. 2, 2014, Available at SSRN: https://ssrn.com/abstract=2497508 or http://dx.doi.org/10.2139/ssrn.2497508

Keith Ambachtsheer (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
919
Abstract Views
4,744
Rank
47,260
PlumX Metrics