Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Haldane Says Investors’ Short-Term Views Are Diminishing Returns

Aug. 22 (Bloomberg) -- Andy Haldane, executive director for financial stability at the Bank of England, said investors’ increasing preference for short-term results is costing them returns and hindering the recovery, according to an article in Prospect magazine.

Future cash flows are getting too heavily discounted, with average returns one year ahead reduced by about 5 percent to 10 percent “too much,” Haldane wrote in the September issue of the magazine, citing a study he conducted with Richard Davies. A survey of 400 chief financial officers that showed more than three quarters would reject projects enhancing long-term value to meet earnings numbers illustrates that “quarterly capitalism is seriously inhibiting long-term investment.”

Policies to counter this outlook should create financial incentives to reward a long-term view, Haldane said. These may include loyalty bonuses to shareholders and employees based on length of tenure, or capital-gains rates on project cash flows that taper off according to the length of the holding period.

“There is compelling evidence that short-termism is slowing investment today and so growth tomorrow,” he said. “In the current environment, that is something we can ill afford.”

To contact the reporter on this story: Jennifer Ryan in London at

To contact the editor responsible for this story: Craig Stirling at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.