The bedrock of our philosophy is that growth and applications of free cash flow represent the best predictor of long -
term shareholder return.
But that's because all they care about is short -
term shareholder return, not long - term customer retention.
I am sure most investors who follow Indian markets know of many more examples of companies with long duration CAPs, which have, in the past, delivered exceptional long -
term shareholders returns even if entry prices were «seemingly high».
Even with very modest sales growth, a dedicated focus on margins, cash flow, and frequent & substantial returns of capital (via buybacks & tenders), will almost invariably produce superior long -
term shareholder returns.
Acquiring businesses or large assets at prices which deliver superior long
term shareholder returns
Not exact matches
Fukakusa was circumspect in addressing the question, writing the bank will «look for the right balance between investing in our businesses for long -
term growth,
returning capital to
shareholders through dividends and share buybacks, and pursuing select acquisitions that fit our strategy and risk appetite.»
Finally, the fourth conundrum is that as companies grow larger and management falls prey to the fallacy that it only exists to maximize
shareholder short -
term return on investment, companies become risk averse.
«We can take a longer
term view, but also at the same time drive good
shareholder returns and good
returns for all of our stakeholders.»
Quite simply, it is the
returns for the
shareholders of that company over the long
term.
FEATURE: Takeovers are a powerful way of delivering short -
term returns to investors, as the Total
Shareholder Return data released by Morningstar and applied to 700 companies on the Business News BNIQ database.
«The aim of this strategy is to significantly improve total
shareholder returns and near -
term profitability and is in the best interest of the company and all its stakeholders,» added Buckland.
«In an environment like this
return cash to
shareholders keeps them pleased with the short -
term gains while not committing to large investments that could hurt performance.»
More traditional investors say Elliott's swoop on a company does not necessarily mean better
returns for long -
term shareholders.
All are
returns that would please any long -
term shareholder (the Nasdaq Composite is up a mere 106 %) but nothing like the run Priceline has seen.
Challenger Managed investments general manger Martin Ashe said that, not only had there been a demand from clients for a fund of this type, but that the company considered socially responsive companies would post attractive
returns for
shareholders over the longer
term.
Provide significant long -
term investment
return to
shareholders.
And when disgruntled
shareholders can't oust top managers, it's often argued, they are better able to deflect the pressure to sacrifice long -
term performance for short -
term return.
The move delivered short -
term gains to
shareholders, and Ackman booked a nearly 100 %
return when he sold his shares soon after during a feud with management.
Are they a way to preserve companies» ability to pursue long -
term value in the face of
shareholders who are overly focused on immediate
returns?
Fairfax Financial Holdings Limited is a holding company whose corporate objective is to achieve a high rate of
return on invested capital and build long
term shareholder value.
Financial risk: The potential for gain or loss on a financial level measured in
terms of revenue,
return on investment,
return on equity,
shareholder value, profitability, debt level, capital expenditures and free cash flow.
They have their eye set on the long
term which will allow them to continue to
returning capital to
shareholders.
Linking executive compensation to ROIC could create immediate
shareholder returns and drive a long -
term commitment to the lean and disciplined corporate structure that Peltz wants P&G to adopt.
In determining the long -
term incentive component of CEO compensation, the Committee shall consider, among other factors, the Company's performance and relative
shareholder return, the value of similar incentive awards to chief executive officers at comparable companies, the awards given to the CEO in past years, and other factors considered relevant by the Committee.
Gorman's long -
term incentive awards will convert into shares in 2017, based on meeting targets related to
return on equity and relative total
shareholder return, according to the filing.
They have a high
return on capital, consistently good
returns, and they're run by leaders who want to create long -
term value for
shareholders while also treating their stakeholders right.»
To qualify for the award, managers» funds must have posted impressive
returns for the year, and the managers must have a record of delivering outstanding long -
term risk - adjusted performance and of aligning their interests with
shareholders».
As we ring in a new year, we believe we have built a portfolio of high quality companies that will provide our
shareholders with attractive
returns over the long
term.
«We are focused on debt repayment and capital flexibility, investment in the long -
term sustainability of our core iron - ore assets, creating low - cost future growth options and delivery of
returns to our
shareholders,» the company said in a statement.
While some defend the buyback practice as a method of
returning cash to
shareholders, others, including my colleague Larry Fink, have argued that some companies today are focusing on maximizing short -
term shareholder value at the expense of investing in the future.
Although financial activism may
return immediate wealth to some
shareholders through the sale of assets, payment of special dividends or share buybacks, evidence is mounting that this may be at the expense of the longer
term corporate and societal interests.
Management has made a priority of selling non-core assets to
return capital to
shareholders, but the company's prospects for sustainable long -
term profit growth in a low - rate environment look increasingly bleak.
Most of those companies have more near -
term ability to
return capital to
shareholders through dividends and share repurchase than financial stocks do.
Indeed, he suggests that failure to obtain the highest possible
returns for
shareholders, by immoral practices if necessary, constitutes «theft in Aquinas»
terms.»
This agreement is an important part of positioning RiceBran Technologies to focus on creating
shareholder value by pursuing long -
term opportunities to expand our core ingredients business that will improve our margins and EBITDA and generate positive
returns on capital.»
The results reinforce the sustainability of our business model and the capacity to deliver superior long -
term return to
shareholders, as the economic and business environment improve.»
They argue that investment managers should exercise duties of stewardship, rather than maximising short -
term returns; companies should serve the interests of a wider group of stakeholders, not only
shareholders; successful businesses are rooted in their communities, acknowledging wider social obligations.
This is the Triple Bottom Line, which ensures that decision - making balances financial growth with corporate responsibility, short -
term gains with long -
term growth, and
shareholder return with other stakeholders.
We aim to generate value for our
shareholders by delivering sustainable
returns in the form of a regular, reliable and growing dividend, share repurchases, and long -
term capital appreciation.
«This investment provides Barnes & Noble with capital to grow its business on
terms that are attractive for both parties and allows us to play a meaningful role in shaping their success to generate
returns for our
shareholders and theirs.»
Corporations can use duty to
shareholders to justify making charitable donations (PR value), withholding charitable donations (damage to bottom line), keeping bad employees (avoiding litigation risk), firing bad employees (avoiding employee error risk), focusing on long -
term gains (building sustainable profits), focusing on short -
term gains (
returning the best quarter than can be had), selling spyware to the Chinese politburo (profits), withholding spyware from the Chines politburo (avoiding regulatory intervention), and so on.
Prem Watsa is the Chairman of the Board of Directors and the Chief Executive Officer of Fairfax Financial Holdings Limited, a financial services holding company whose corporate objective is to achieve a high rate of
return on invested capital and build long -
term shareholder value, since 1985.
They are mandated * by law * to maximise
returns for
shareholders which is generally measured in
terms of profit.
MKL is on my great company watchlist, and if it falls to book value or below, it's likely to be an outstanding long
term investment that will allow
shareholder returns to match or exceed book value growth over time.
Franklin Income Fund's flexible approach has delivered solid long -
term returns to its
shareholders.
I use the
term «
return» loosely since the company does not actually profit from the buyback, but from the
shareholder's perspective the company is worth more per share.
I'll be honest: Even though the
term is widely used, I don't like «
returning cash to
shareholders» when it is applied to buyback programs.
Hormel's corporate culture is all about long -
term profit maximization, which has allowed it to generate strong, consistent, and growing margins and
returns on
shareholder capital over time.
In contrast, banks are for - profit organizations whose earnings may be
returned to
shareholders in
terms or dividends or an increase in share value.
On the surface that seems like a bit of a head scratcher but I still like their direction long
term and of course agree with their efforts to
return capital to their
shareholders.