Herald investments12 Jun 2020 10:15
We take pride in endeavouring to help emerging companies grow, and always encourage
management to make decisions which will maximise value on a five year view. Theoretically
efficient markets should discount the long term potential, and we encourage management to
articulate any long term investment, which is adversely affecting short term profitability, but
appreciate that this will sometimes adversely affect the short term share price. We encourage
management not to be short-termist by endeavouring to maximise the short term share price, but to
aim to maximise value over the long term. The danger is that this approach can leave companies
vulnerable to a take-over bid, and we regularly resist takeover approaches which might give a short
term uplift in value, but do not appropriately reflect long term value.