Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The Long-Term Stock Exchange Opens for Business

blog.ltse.com

Post reply on HN
Print view View original

91–100 of 561 posts

Re: The Long-Term Stock Exchange Opens for Business

#91

Post by crazygringo »

With all respect to Eric, I strongly believe the concept of forcing "long-term investment" is ultimately a scam.

At the end of the day, it's fundamentally a blank check for management to misbehave -- to misspend money, pursue pet projects rather than real business goals, and have nobody to tell them no.

There is nothing inherently short-term about the stock market -- this is a myth that keeps getting repeated but has zero substance. Short-term changes in supply and demand add changes to prices, but it's not like anything's 10x off of the value a company is expected to produce -- the net present value of future cash flows.

But if you prevent people from selling, then you're preventing the market from holding a company accountable when its management messes up.

Re: The Long-Term Stock Exchange Opens for Business

#92

Post by bo1024 »

sfard wrote: post #4

I read this article and skimmed the original and I'm still not sure what the exact details of this exchange are. No robo/quant investing? Minimum hold periods? No requirements for quarterly earnings? No penny stocks?

Same here. I was looking all over the site for "the idea" or the differentiator ... couldn't find it.

I think most of the approaches you mentioned wouldn't hold up for a large stock exchange because some off-platform trading site would spring up to fill the gaps. For example, you have a minimum holding period, but off-platform you can "sell" your shares at the current market price, then transfer them for free once the holding period ends. Or something.

I think you have to change the way the shares themselves work somehow (or how dividends work, etc). I'm not sure, seems like a hard problem.

Re: The Long-Term Stock Exchange Opens for Business

#93

Post by [deleted] »

jayd16 wrote: post #78
mikepurvis wrote: post #63

Earlier quoted context omitted.

Not the parent, but it's obvious what the origin of the phrase is, and while it may not be as icky as something like "open the kimono", it's definitely one that is trivially replaced with no loss in meaning, and therefore almost certainly should be: "The issue with 'off the reservation' and similar phrases is that these things are said without any thought. They become a part of the common vernacular. Freely they move…

Is there some pejorative meaning to opening the kimono or is it just mildly lewd?

[deleted]

Re: The Long-Term Stock Exchange Opens for Business

#94

Post by throwaway0a5e »

mikepurvis wrote: post #63
pbhjpbhj wrote: post #56

Earlier quoted context omitted.

Forgive me for straying OT: It seems like a fact-based analogy. 'A group have been restrained to "territory", but a member has broken that restraint'. There doesn't seem inherently to be a judgement as to the restraint or the rogue being right/wrong. I'd be interested in why you felt the usage was beyond the pale sufficiently that it needed to be reined in? The concept of territorial reservations doesn't appear to me…

Not the parent, but it's obvious what the origin of the phrase is, and while it may not be as icky as something like "open the kimono", it's definitely one that is trivially replaced with no loss in meaning, and therefore almost certainly should be: "The issue with 'off the reservation' and similar phrases is that these things are said without any thought. They become a part of the common vernacular. Freely they move…

>"The issue with 'off the reservation' and similar phrases is that these things are said without any thought

If they are said without any thought or connotation then is there really any slight against whatever group is the origin of the phrase?

He could have just has easily said "off in left field" which is arguably a slight against leftists and commies but has so long been a colloquialism that it has lost that connotation.

Re: The Long-Term Stock Exchange Opens for Business

#95

Post by mikepurvis »

jayd16 wrote: post #78
mikepurvis wrote: post #63

Earlier quoted context omitted.

Not the parent, but it's obvious what the origin of the phrase is, and while it may not be as icky as something like "open the kimono", it's definitely one that is trivially replaced with no loss in meaning, and therefore almost certainly should be: "The issue with 'off the reservation' and similar phrases is that these things are said without any thought. They become a part of the common vernacular. Freely they move…

Is there some pejorative meaning to opening the kimono or is it just mildly lewd?

Would you use the phrase if there was a woman, especially an Asian woman present? If not, then that's your answer:

> “Opening the kimono” implies a coyness and sensuality that conjures up images of submissive Asian women reluctantly willing to show you their most vulnerable side. I understand why someone would use it just from the shock value alone. It took the wind out of me when I read it.

https://medium.com/@brunchandbudget/opening-the-kimono-on-op...

Re: The Long-Term Stock Exchange Opens for Business

#98

Post by JackFr »

AznHisoka wrote: post #8
picodguyo wrote: post #3

"They described the immense pressure on companies to pursue short-term results over creating value for future decades and generations." Where does this pressure come from? The board? Can't you appoint a board that is long-term friendly? Institutional investors? Wouldn't the same investors interested in the LTSE also be interested in you on the traditional market if long-term is part of your DNA? Shareholders? Shareho…

One of the problems with the regular stock market is that valuations are not tied to the future cashflow of the company. This isn’t how the LTSE works but it would be awesome if there was an exchange that required every company to pay a fixed percentage of their cash flows every year after X years. Combined this with a minimum holding period, and I dare people to bid $300+ for Tesla stock :)

The old Dutch joint stock trading companies were required by their charters to liquidate and return all capital to investors every couple of years. That enforces strict discipline on management. However after a few decades of that owners began to trust managers enough that a permanently capitalized enterprise seemed more efficient.

The development of modern financial capitalism is important and fascinating. These structures that we take for granted -- tradeable claims on assets, separation of ownership and management, perpetual life corporations, etc. -- all came about to solve particular problems.

Personally I don't foresee the LTSE succeeding, but I'm happy to see people try to innovate.

Post reply on HN