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Customer Quote by John Gutfreund

“Shareholders share in the downside and not necessarily in the upside; that's the whole story.” quote by John Gutfreund
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“Shareholders share in the downside and not necessarily in the upside; that's the whole story.”

John Gutfreund

About This Quote

Source Speech: 1990, Annual Shareholder Meeting, John Gutfreund

Investors share risks but not always rewards; risk‑reward balance is uneven.

In simple terms: Shareholders bear downside more than upside.

Key Takeaway

Assess risk versus potential gain.

Themes

finance risk investment

Mood

analytical cautious

Type

business economic

When to use this quote

  • stock markets
  • venture capital
  • private equity

Key Concepts

shareholder theory market dynamics corporate governance

Questions to Reflect On

  • How can investors be better compensated for risk?
  • What mechanisms align risk and reward?
A Different Perspective

Risk may deter needed innovation.

4.5 out of 5 (4 ratings)

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