Value investors use financial analysis
Investments with long-term objectives in mind, their companies generate more shareholder value, create more jobs, and contribute more to economic growth than do peer companies that focus on the short term.
Instead of playing to win, many established businesses play to avoid losing and, as a result, struggle to stay in front of competitors. Long-term-oriented companies identify strategic moves that will keep them ahead in the long run.
Value investors actively ferret out stocks they think the stock market is underestimating.
Managing for the long term requires executives to monitor their companies’ standing in the market and to enter or exit businesses as the competitive landscape shifts, even if it involves shrinking a company. They must also be willing to move talent and other resources to the highest-value initiatives and to do so frequently.
Leaders at the company chose to commit to a major omnichannel initiative, even as they anticipated that some investors would object to the short-term financial hit from the move despite its potential long-term benefits.