Wow, it sure was pretty hard to find the street address, and this was in a context which makes it look like you were legally forced to publish it. Don't you want people to know where you're located at?
The Long-Term Stock Exchange Opens for Business
231–240 of 561 posts
Re: The Long-Term Stock Exchange Opens for Business
#232[deleted]
Re: The Long-Term Stock Exchange Opens for Business
#233Earlier quoted context omitted.
The public markets aren't just designed to maximise shareholders value. Maximising shareholder value is supposed to be a means to maximising societal value. If the shareholder model isn't doing that then it isn't fit for purpose.
The perpetual, limited liability enterprise as legal person, owned via tradeable claims on equity, managed by professionals distinct from the owners, what we call modern financial capitalism, has been a boon to the world. Obviously it’s not the only way one could organize productive endeavors. But it’s pretty well understood that it produces greater long term economic growth than any other competing system. It has kn…
> it’s pretty well understood that it produces greater long term economic growth than any other competing system... It has known shortcomings.
I mostly agree that it's better than other system that we've tried in the past (although I'd argue that the more highly regulated capitalism with higher taxation levels of the 60s-80s was slightly better than our current (post-90s) deregulated system).
But I'm a bit more ambitious than you. I don't think we should rest on our laurels and accept the known shortcomings. I think we can do better, and I think we should actively look at doing so.
I feel like maximising shareholder value is a mediocre solution to the problem introduced by the creation of a non-owner managerial class. I'm not entirely sure what the best solution to the problem is, but I'm convinced that we need a better one than the one we have.
Re: The Long-Term Stock Exchange Opens for Business
#234Earlier quoted context omitted.
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…
> What does that mean concretely? I noticed there doesn't appear to be tangible answers to this anywhere (including in the reply you got to your comment). Curious to pitch a supposed long-term stock exchange without anything meaningful to lure listings to it other than vapor statements. I'd bet it's because they can't set any strict upfront requirements. They won't be able to get the listings they need if they do it,…
Agreed. Just like everything else, the ideas hold more power based on who they are coming from. Eric is a stellar individual with a trail of success behind him - and I'm not taking anything away from him with this comment, but if I were to go to a set of worthy investors and corporations pitching this idea - I'd be laughed out of the room as naive.
Re: The Long-Term Stock Exchange Opens for Business
#235Add a 1 minute delay on every order and most automated trading would be gone.
I'd prefer trading timeslots, like once every 10 minutes, with randomized execution order.
You put your orders in, they all get queued up and then the queue gets executed randomly.
That would force the traders to think in different terms, closer to the real value of the asset.
Re: The Long-Term Stock Exchange Opens for Business
#236Many private companies are staying private for longer, with an average time from launch to IPO creeping up toward 10 years or more. Most unaccredited investors are missing all of those substantial early gains.
Does LTSE have any plans to help speed the path to IPO and let more unaccredited investors participate in early growth and success?
Re: The Long-Term Stock Exchange Opens for Business
#237This feels... not open. Click around the site, can't find anything useful just manifestos and principles. I really hate when startups do this. You're not "open for business" you're open to being in business. If you tell me you've started an exchange, you're open when there's listings and people can trade.
Re: The Long-Term Stock Exchange Opens for Business
#238Congratulations. "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…
> I hope others see that our markets are designed. They are human artifacts. They are not natural laws to be accepted as-is.
“Markets” are not the same thing as “the market”. Markets are human artifacts; the market is an emergent behavior. It’s governed by laws beyond our control as surely as the behavior of materials are governed by thermodynamics.
If the behavior of your markets fails to match the reality of the market, the best you can hope for is to only introduce a small amount of inefficiency. Of course, utopians who ignore the real nature of the market usually find themselves lethally encumbered by deadweight loss.
> your goal is to allow companies to be judged on their own merits, instead of someone else's.
What is this supposed to mean? Why would a company’s subjective evaluation of themselves be a better basis for market valuation than the evaluation of the people who actually buy and sell interest in that company?
Re: The Long-Term Stock Exchange Opens for Business
#239Congrats! I agree that this is a very important problem to solve. Can you elaborate on some of the specifics of how LTSE will incentive investors to think long-term?
I’m imagining some strict trading frequency limits. Like an inventor can only trade a specific stock once a year. Do I have the right idea?
Re: The Long-Term Stock Exchange Opens for Business
#240Why did you feel the need to support trading of non-LTSE listed names on the LTSE? Are there novel order types or other trading mechanics coming down the pipe?