When the Share Price Swings, Start with a Letter to Employees

This morning I discussed this with a portfolio company’s chairman/general manager. My personal suggestion: start by sending an internal letter to employees. Share-price rises and falls are temporary. Excessive capital-market optimism can push a price beyond reasonable value; excessive pessimism can also produce a sharp correction. In other words, what goes up can come down the same way. Although we cannot influence capital markets, we can do our own jobs and every task at hand well. The real value of a company’s existence is creating and delivering value to consumers. Neither the company’s value nor your own should be determined by capital markets; consumers should decide. Even employees who own company shares need not let daily price movements affect their mood. An unsettled mood can distract you from consumers and from creating longer-term value. We have longer-term goals and aspirations, and more important work to complete. Do not become trapped in capital markets’ daily money game. I hope every colleague will hold to long-term value creation, remain unaffected by short-term fluctuations, make time a friend, and work toward becoming a better self. --- For me, recent share-price swings are secondary. I worry more about management/employees becoming unsettled and insufficiently focused on value creation. Losing focus hurts operations. Bring attention back to running the company, innovation, and consumers. I do hope my little one’s writing will surpass Dad’s. XDD