Is 80% of stock value based on earnings >10 years into the future?

I am reading the B2B Institute’s B2B Trends, which is excellent so far. But on p.14, while I agree with their point about long-term brand building, I question a supporting statement:

« Good CFOs understand that businesses are valued not on current cash flows but on future cash flows. By some estimates, 80% of the value of your stock is based on sales 10+ years in the future. »

So I posted the question of Twitter and got some insightful responses.
Continue reading “Is 80% of stock value based on earnings >10 years into the future?”

Thinklong – Combating short-termism

Gareth Price wrote an article titled Thinklong.

« I believe the future of brands requires collective action to combat short-termism…  Thinklong’s primary ambition is to create an environment in which brands can flourish by tackling the source of the short-term pressures they face… As proponents of behavioural economics would highlight, we can’t hope to tackle the issue by changing attitudes, these will follow behavioural change.  » Continue reading “Thinklong – Combating short-termism”