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The EU’s internal market and services commissioner, Michel Barnier.
The EU’s internal market and services commissioner, Michel Barnier.
(MCHEL EULER/AP)

BREAKINGVIEWS

How about some loyalty points for dividends?

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Patience is a virtue lost on many investors, especially equity investors. Critics argue that their obsessive desire for short-term gains pressures management to favour quarterly profit over sensible long-term investments. When short-termism takes the form of following the crowd, share prices can swing to ludicrous lows and highs. Among other risks, lows can create negative loops of feedback in the share price. Companies may use expensive shares to pay for value-destructive acquisitions.