The CEO of America's 500 biggest companies will all get a letter today, and they should read it carefully.
It was sent by Laurence Fink, the CEO of BlackRock, the world's largest asset manager. He overseas investments worth more than 4 trillion dollars. Laurence Fink is the single most important shareholder in the world.
And this is what he says: that too many corporate CEOs have been returning more money to investors at the expense of generating long-term value. Instead of investing in new products and new technologies and new markets, they're doing higher dividends and stock buyback's.
Fink says all these buyback's send a message that companies can't spend their money wisely. He also says current tax policy incentivizes short-term gains instead of long-term investment.
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