"As to maquarie i said he didnt create any value for you...

  1. 16,402 Posts.
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    "As to maquarie i said he didnt create any value for you personally, he didnt change your wealth, the share price didnt change in 12 months so adjust for inflation you probably went backwards
    That dumb stuff happens all the time and you are a fool for justifyin it"


    I see your problem now: you view CEO success through the prism of arbitrary, short-term market sentiment, i.e., short-term share price fluctuations.


    On the other hand, self-respecting business owners see share price fluctuations as merely market “noise”, focusing instead on the underlying performance of the business.

    Take this company: DTL, an IT service business.

    In around 2010, the CEO, supported by the Board, took the decision to strategically pivot the legacy business to the internet cloud, which was nascent at the time. The reinvention was costly and caused a contraction in profitability for two or three years.

    Because the market didn’t “get it”, the share price halved over that period.
    But the transformation wasn’t rushed; it was carefully considered and executed with great care and patience.
    As it happened, it was a visionary strategic move, one which greatly enhanced the company’s service offering and moved it way ahead of its competitors.


    The long-term share price performance – which is what I am interested in because it is driven by the underlying business, unlike the short-term market randomness – speaks for itself:

    DTL graph.JPG


    That is a direct outworking of a unique and differentiated management team, one which I don't believe should be valued on some sort of commoditised pricing.

    As a DTL shareholder, the people running this business deserve their premium remuneration.

    .
 
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