What exactly is an activist investor, and how do they influence the companies they invest in? In this episode, we are joined by Andy Christopher, CFA, Lead Financial Planner, to explore the world of activist investors. You’ll learn about their roles, the impact they have on companies, and whether they typically boost returns or create concerns.
We’ll discuss the tactics activist investors use, from advising management to restructuring companies or even replacing the board of directors. Discover how these investors differ from private equity firms and the strategies they employ to achieve their goals. This episode offers a comprehensive look at the power and influence of activist investors and the broader implications for companies and shareholders alike.
What You’ll Learn In Today’s Episode:
- What is an activist investor?
- What do activist investors do?
- How activist investors change the company.
- What a passive investor does.
- When should shareholders have a say in how a company is run?
- Who activist investors are.
- What are these investors targeting?
- The importance of expecting change in life, business, and finances.
- Why you must have an emergency fund.
Ideas Worth Sharing:
- “To improve performance, you either make more money or spend less of it.” – Andy Christopher
- “What makes a good corporate governance? The owners and shareholders should have a say in how the company is run and have an informed decision.” – Andy Christopher
- “Usually, activist investors are huge hedge funds, they’re wielding 10s of billions of dollars, and they can be very strategic and tactical in getting what they want, maybe even a little bit ruthless.” – Robert Eklund
Resources In Today’s Episode:
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