The only way I think investors could invest more in companies with a long term view is better margining so you could borrow money to invest in companies without getting margin called. Eg you can buy a house with 5% down, but you can't do this with stocks because normal volatility means you'll likely be wiped out.
You can buy (and sell) options to limit the impact of that volatility.
But I'm not sure why you would want to encourage margining when you are against volatility? The capital for the margin loan has to come from somewhere too.
So instead of person A putting up 5$ and borrowing 95$ to own 100$ in stock, and person B lending those 95$; it might be better for volatility for person A to own 5$ in stock and B to own 95$ in stock?
I am not sure.
For full disclosure: my investment strategy involves margining.
(Btw, I do think that 5% equity on houses is bad. It's mostly a function of land prices going up so much.)
I suppose this is possible if it was an amortized loan against personal liability like a mortgage. Clearly there is more volatility in the asset, so the risk would have to come down by insurance. I think it would get quite expensive to service these loans.
