This Week in Intelligent Investing
Shrinking Timeframes and First-Order Thinking Since the Covid Crash
Nov 19, 2023
Topics discussed include the impact of COVID on short-term thinking in the market, dangers of information accessibility and false press releases, short-term thinking and manipulation, evaluation of managers and the pressure to perform, challenges of frequent turnover, and the negative impact of short-term thinking and guidance on companies.
54:35
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Quick takeaways
- Short-termism has prevailed in the market due to the fast-changing and uncertain environment.
- Short-termism has consequences such as declining R&D and capex investments and a lack of long-term thinking and planning.
Deep dives
First-order thinking prevailing in the market
The speaker reflects on the prevalence of first-order thinking in the market, particularly in the past three years of dynamic and unprecedented events. He points out that the fast-changing and uncertain environment has led to short-termism prevailing for an extended period. He believes that the volatility and rate of change have made it difficult to focus on the long-term, with investors and companies being more concerned with short-term estimates and performance.
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