The quote of the day comes from Martin Lipton, a partner at Wachtell, Lipton, Rosen & Katz. He was attending a conference about shareholder activism in the new age.
He decided to unload some buckshot against the Hedge Fund strain of this peculiar form of investment management.
"One of the most significant problems caused by activists is their method of attempting to force companies to focus on short-term stock gains rather than long-term value, which could entail pushing for share buybacks or possible special dividends to create a quick profit for shareholders."
I wonder how many companies are on the brink of bankruptcy who wished they had never bought back billions of dollars worth of stock during the good times. I remember many years ago some activists trying to get Ford to pay a special dividend because its cash hoard was too "large." Recent events have shown that no amount of cash is too large.
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