Nothing in finance is more fatuous and harmful, in our…
“Nothing in finance is more fatuous and harmful, in our opinion, than the firmly established attitude of common stock investors regarding questions of corporate management. That attitude is summed up in the phrase: "If you don't like the management, sell your stock." ... The public owners seem to have abdicated all claim to control over the paid superintendents of their property.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Investors who sell stocks simply because they dislike management ignore their role as owners and can harm both themselves and the company.
In simple terms: Selling because you dislike managers is short‑sighted.
Key Takeaway
Consider influence, not just price.
Themes
ownership
corporate governance
investment strategy
Mood
cautious
critical
Type
advisory
analytical
When to use this quote
- activist investing
- board elections
- shareholder meetings
- portfolio reviews
Key Concepts
agency theory
shareholder rights
short‑termism
Questions to Reflect On
- How can shareholders hold management accountable without selling?
- What mechanisms can improve owner influence?
A Different Perspective
Selling may for to missing long‑term value creation.