Originally posted by justinr I would agree to a great extent but would point out that large companies like Siemens will asses risk from a different viewpoint than people like Apple.
I see what you want to say.
But by market cap., Apple is now a lot "bigger" than "large" company Siemens.
The culture of shareholder value really brings the corporations down. Jobs was chased off board by Apple's shareholders. It's only now that they had to resurrect him that he can do his thing without thinking in terms of shareholder value. He thinks in terms of great user experience and this is what made him excel. Isn't it ironic that the company who may soon have the largest market cap. doesn't care about market cap. at all?
I really only want to invest into corporations (become a shareholder) where the board declares to ignore shareholder value. Is there and certificate for this?
Sounds paradox? No, it isn't. In order to optimize long-term shareholder value, you have to ignore short-term shareholder value. So, the most successful companies either aren't public (the famous German hidden champions who own large parts of their resp. world markets), have a family as shareholder, or have a policy to ignore their shareholders. Best then to not have more than 50% listed though
One way to improve the world financial system would be a rule that if you buy stock, you cannot sell earlier than after five years. Or pay a high tax. To buy stock for resale after 1 hour is
not investment.
As for Siemens, you're right, they're earning their money elsewhere (medical, power plants, trains ...). But this doesn't mean they cannot succeed in areas closer to the end user. In fact, they really should to stay competitive as a whole.