171–180 of 561 posts
Congratulations. "We shape our buildings; thereafter they shape us." -- Winston Churchill Though I barely understand such things, I'm very excited by your LTSE and Katsuyama's Investors Exchange (IEX). Listening to your interviews about LTSE, my takeaway is that your goal is to allow companies to be judged on their own merits, instead of someone else's. So one side effect may be to help migrate private equity funded…
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We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I know that doesn’t sound super sexy but we believe this is a high-leverage point for reforms We will have more to say on reforms that relate to reading in the future, but we don’t limit the ability of “tourists” to trade in and out of stocks as normal.
>We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I've heard many a company say one thing and act another. How will this be different? Will delisting be the repercussion of short termism?
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We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I know that doesn’t sound super sexy but we believe this is a high-leverage point for reforms We will have more to say on reforms that relate to reading in the future, but we don’t limit the ability of “tourists” to trade in and out of stocks as normal.
What does that mean concretely? Will earnings reports still be quarterly? I guess I'm trying to figure out why the exchange has to do anything here. There's plenty of investors and companies that think long term with BRK and its investors being the most prominent. Digging a bit more, on the investor side, there are value investors who look for solid, if unspectacular businesses at a price point and buy and hold over…
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We will endeavor not to list such companies
> We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. How will you handle companies that eventually go against the required guidelines? Could a company become permanently unlisted? And how would that affect any shareholders of the company who purchased through LTSE?
Shareholders would have their ownership protected in that scenario (as they still own common shares), same as any other company who was delisted from an exchange
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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 str…
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I think buybacks have occasional legitimate uses, but there’s a reason that they were considered basically illegal not that long ago I think if companies are sincere in their desire to use buybacks only for good purposes, they should commit to report “EPS net of buybacks”
Aligning executive compensation with shareholder interests would also help. Stock options incentivize executives to buy back shares (boost the price, do a buy back, exercise options).
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Yes, you can do both. Trades happen through stock brokers as with any other exchange. You can track the exchange’s daily trading volume here: https://markets.cboe.com/us/equities/market_share/ The listing application (and attendant legal docs) is here: https://longtermstockexchange.com/listings/documents/
Is there a publicly available list of companies that are listed on the LTSE?
Is there an index fund where I can easily buy into all the companies in the LTSE?
Which was harder - building a stock exchange, or getting someone to read a whole book?
With the benefit of hindsight, which of the following would you say is the biggest predictor of growth in equities prices: everything else, greater buying, less selling, brand, liquidity, or previous prices?
I have a question: what exactly is different? Wasn't clear in the blog post. Do you prevent day-trading or something similar?
We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I know that doesn’t sound super sexy but we believe this is a high-leverage point for reforms We will have more to say on reforms that relate to reading in the future, but we don’t limit the ability of “tourists” to trade in and out of stocks as normal.