New data shows long-term focus pays off

We know there’s a chronic mismatch between long-term investors like pension funds and, well, pretty much anyone else, including investment managers and corporations. And we know instinctively that short-term thinking can lead to long-term problems. But hard numbers have been missing from the conversation. Does short-termism really add up to poor performance on the bottom line?

Yes, apparently. New data from McKinsey and Co.’s corporate horizon index shows that corporate short-termism does indeed hamper profitability, and significantly so.