> This is a popular opinion, but I find it difficult to believe. It relies on the notion that stockholders are fools and unable to recognize when a company destroys its long term prospects for short term gain.
Not necessarily "fools". "Not experts" and "easy to influence" would be like it. Very much the trouble with the modern democracy: incompetents elect those who scream the loudest and say what they want to hear.
Like many others here, I experienced the short-term thinking firsthand. Reckless and pointless acquisitions and hiring spree to prop up the KPIs and scream to the entire world, "look how great we're doing!!!" is just one example.
> The trouble is, once the short term gain is there, who are the short termers going to sell to? A bunch of suckers?
Absolutely. The greater fool, sadly, is the foundation of much of the modern global economy.
Look at any bubble over the last 50 years.