we have a fiduciary duty to deliver them good returns
i do not believe we have a fiduciary duty to maximize every deal
because when you maximize every deal you kill your franchise
and i believe they are investing in our franchise first and foremost
”@fredwilson in the comments on this AVC post “Does Price Matter?”
So many on Wall Street and in companies are looking at maximizing shareholder value and/or returns in the short term and sacrificing the long term. This is how we end up with financial scandals - misaligned incentives (and market punishments) lead people to look to the immediate future without any longterm concerns. It’s now pretty remarkable to see people and companies that take the long view, which is why investors like Fred and companies like Zappos become so well known so quickly.
