The economic costs of excessive short-termism

2011 Conference - Due Diligence Forum |  Hyperion Asset Management |  25 August 2011

This Due Diligence Forum Research Paper, presented at the 2011 PortfolioConstruction Forum Conference, argues that short-termism is a pandemic that continues to flourish unchecked within financial markets, resulting in significant long-term economic costs to investors. It examines the economic costs of excessive short-termism by corporate management, active fund managers, asset consultants, super fund trustees – and by their principals, ‘mum and dad’ investors - and highli...