McBassi Logo

 October 2012
In This Issue
Thoughts on the Paradox of Shareholder Value
Join Our Mailing List

Thoughts on the Paradox of Shareholder Value

This month's newsletter is an article written by McBassi CEO Laurie Bassi on shareholder value.  The newsletter contains the beginning of the article; click the link at the bottom for the full text.

 

Day traders - don't waste your time reading this.  This is intended for the rest of us who are interested in buying and holding shares of firms that will enable us to invest in our children's education and enjoy our retirement, while hopefully also contributing to the long-run prosperity of our nation and the world.


Now for those of you who are still around, here's the paradox.  The way to increase shareholder value is to stop focusing (obsessing?) on it.  Rather, the way for firms to increase their shareholders' value is to be a good company - one that is good to its employees, its customers, its communities and the environment. 


I know this might sound hopelessly old-fashioned.  But consider this.  Since my co-authors and I first created the Good Company Index in June 2010, the average stock prices of firms that earned higher scores as good employers, sellers, and stewards have outperformed their less worthy competitors by 30 percentage points.


So if it's as simple as that - the way to increase shareholder value is simply to be a good company - why don't more firms do it?

 

Click here to read the full article.

About McBassi & Company

McBassi is a human capital analytics firm that helps organizations improve their performance through more effective management and development of people.  We have proprietary research-based measurement methods, the analytic know-how, and a proven track record in serving as a catalyst for change and generating win-win results.

You can download a brochure describing McBassi and our services, or visit us on the web.

 

We can be contacted toll-free at 866.345.5730 or [email protected].

 

Feel free to stop by anytime and join in the discussion on the McBassi blog.