Apologies for a (mild) thread-jack. My opinion, one problem with our economic system is focus on short-term results, to the point that several notable companies' stock prices are completely divorced from the reality of their performance. This makes sense if the stock market is primarily a device for gambling or extracting wealth. Investors care less about the prospects of the company than the prospects of the market. I suspect this can trickle all the way down: Board -> CEO -> managers -> individual contributors, all given goals intended to pump the stock short-term, rather than build long-term results.
How do we start to care about quality, building lasting things, fundamentals? What would happen if we taxed capital gains at 100% for the first, I don't know, 3 / 6 / 9 months of holding an asset? Maybe investors would have more incentive to care about fundamentals?
Anyway, I assume I'm wrong about all of this, just looking for someone to explain why. ;-)
There’s no fixing capitalism. It’s a failed system, as Marx predicted 100 years ago. But despite that for more than 100 years almost every country in the world implementing with same disastrous results.
> to the point that several notable companies' stock prices are completely divorced from the reality of their performance.
Which companies? Because the net income and profit margin trends for the most highly valued companies have been the highest in history, for many years now.
How do we start to care about quality, building lasting things, fundamentals? What would happen if we taxed capital gains at 100% for the first, I don't know, 3 / 6 / 9 months of holding an asset? Maybe investors would have more incentive to care about fundamentals?
Anyway, I assume I'm wrong about all of this, just looking for someone to explain why. ;-)