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Quality Shareholders

How the Best Managers Attract and Keep Them

Lawrence Cunningham

$49.95

Hardback

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English
Columbia University Press
03 November 2020
"Anyone can buy stock in a public company, but not all shareholders are equally committed to a company's long-term success. In an increasingly fragmented financial world, shareholders' attitudes toward the companies in which they invest vary widely, from time horizon to conviction. Faced with indexers, short-term traders, and activists, it is more important than ever for businesses to ensure that their shareholders are dedicated to their missions. Today's companies need ""quality shareholders,"" as Warren Buffett called those who ""load up and stick around,"" or buy large stakes and hold for long periods.

Lawrence A. Cunningham offers an expert guide to the benefits of attracting and keeping quality shareholders. He demonstrates that a high density of dedicated long-term shareholders results in numerous comparative and competitive advantages for companies and their managers, including a longer runway to execute business strategy and a loyal cohort against adversity. Cunningham explores dozens of corporate practices and policies-such as rational capital allocation, long-term performance metrics, and a shareholder orientation-that can help shape the shareholder base and bring in committed owners. Focusing on the benefits for corporations and their investors, he reveals what draws quality shareholders to certain companies and what it means to have them in an investor base. This book is vital reading for investors, executives, and directors seeking to understand and attract the kind of shareholders that their companies need."

By:  
Imprint:   Columbia University Press
Country of Publication:   United States
Dimensions:   Height: 229mm,  Width: 152mm, 
ISBN:   9780231198806
ISBN 10:   0231198809
Pages:   264
Publication Date:  
Audience:   General/trade ,  ELT Advanced
Format:   Hardback
Publisher's Status:   Active

Lawrence A. Cunningham, editor and publisher since 1997 of The Essays of Warren Buffett: Lessons for Corporate America, is the Henry St. George Tucker III Research Professor at George Washington University. His books include Berkshire Beyond Buffett: The Enduring Value of Values (Columbia, 2014) and Margin of Trust: The Berkshire Business Model (Columbia, 2020).

Reviews for Quality Shareholders: How the Best Managers Attract and Keep Them

This book asks readers to reflect on important questions: What is a quality shareholder, and are you acting as one in the stock market? By following Cunningham’s prescriptions, companies can attract such investors and improve economic returns, and individuals have a roadmap to become quality shareholders and improve their investment results. This is a worthy goal, one that should be broadly shared. -- Robert G. Hagstrom, author of <i>The Warren Buffett Way</i> Cunningham has written a highly engaging, eminently readable book on an important but as-yet-unheralded shareholder cohort, the quality shareholders. Quality shareholders—engaged, long-term investors who can provide management with a sounding board and constructive criticism—may be the solution to rising transience and short-termism pervading markets. Cunningham describes how managers who run their companies to attract quality shareholders and investors who strive to exhibit those qualities contribute to the common good. -- Tobias Carlisle, author of <i>Deep Value</i> and <i>The Acquirer's Multiple</i> Quality Shareholders highlights the close correlation between patient long-term investors and companies focusing on long-term strategies and profits. Its numerous examples of successfully run corporations with such dedicated shareholders will be of interest to individual and institutional investors alike. -- David Kass, University of Maryland, writer of the <i>Warren Buffett Blog</i> This amply indexed book is an ideal resource for anyone considering a career (or already working) in investment management, investor relations, or managing a publicly traded firm. * Choice *


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