Shareholder Value: “The World’s Dumbest Idea”

Shareholder value, and the creation thereof is one of Wall Street’s obsessions and a crucial caveat of quality investing. However, James Montier (author of The Little Book of Behavioral Investing among other titles), believes that shareholder value is “the world’s dumbest idea” and in a paper published at the end of 2014, he outlined the evidence for making this accusation. You can read the paper in its entirety at the link above, below is a summary. Shareholder Value: The world’s dumbest idea By the late ’90s, the corporate world had become obsessed with the notion of shareholder value. As Montier points out in his…