Anyone can buy stock in a public company, but not all shareholders are
equally committed to a company's long-term success. In an increasingly
fragmented financial world, shareholders' attitudes toward the companies
in which they invest vary widely, from time horizon to conviction. Faced
with indexers, short-term traders, and activists, it is more important
than ever for businesses to ensure that their shareholders are dedicated
to their missions. Today's companies need "quality shareholders," as
Warren Buffett called those who "load up and stick around," or buy large
stakes and hold for long periods.
Lawrence A. Cunningham offers an expert guide to the benefits of
attracting and keeping quality shareholders. He demonstrates that a high
density of dedicated long-term shareholders results in numerous
comparative and competitive advantages for companies and their managers,
including a longer runway to execute business strategy and a loyal
cohort against adversity. Cunningham explores dozens of corporate
practices and policies--such as rational capital allocation, long-term
performance metrics, and a shareholder orientation--that can help shape
the shareholder base and bring in committed owners. Focusing on the
benefits for corporations and their investors, he reveals what draws
quality shareholders to certain companies and what it means to have them
in an investor base. This book is vital reading for investors,
executives, and directors seeking to understand and attract the kind of
shareholders that their companies need.
