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Shareholder Activism

Discussion in 'Other Asset Classes' started by austing, 23rd Jun, 2016.

  1. austing

    austing Well-Known Member

    28th Jun, 2015
    North Maleny, QLD
    Personally I feel many of these so called Activists should be $@##%%^¥¥. Excuse my language sorry. Yes in some cases their action is warranted but more times than not it is short termism and the desire for a quick buck at play.

    Here is an interesting article on the topic in relation to Buffet's Berkshire Hathaway Co:
    Will Berkshire Hathaway Eventually Get Broken Up By Activists?

    Reminds me a bit of Perpetuals and Carnegie's attack on SOL.

    Whatever happened to long term inter-generational investing?
    Last edited: 23rd Jun, 2016
  2. The Falcon

    The Falcon Well-Known Member

    18th Jun, 2015
    The root of short termism is in short term performance measures and the incentives that relate to them. That and good old opportunism. BUT, there are certainly times that activism is required. The Carnegie / PPT play on SOL required ATO demerger "relief" anyway that was always unlikely....and you know my view on that anyway :)

    Will be interesting to see how things play out with BRK. I am ambivalent on a post Buffett break up really. The good thing is the owned businesses are still worth owning in their own right.
    Last edited: 24th Jun, 2016
  3. willair

    willair Well-Known Member Premium Member

    19th Jun, 2015
    It’s possible that Buffett’s estate will be able to hold off the activists while his shares are slowly transferred to the Gates Foundation and sold off. But you have to assume that a publicity-hungry activist investor or two will eventually take their shot at “unlocking value” in the various Berkshire holding companies.