Re:Employment rates for STEM Ph.D.s are down or stagnant acr...
by HarryHirsch on Sunday July 27, 2014 @03:29PM
(#8093700)
Companies that sacrifice long term for short term profits will, assuredly, do poorly long term. Their stock price will decline. Investors will see this and will short the stock. The stock will have low P/E ratios.
We see this play out right now. Facebook and Google offer faster return on investment than Merck and Pfizer, and that's why stock prices are where they are.
But when you shut down a research facility you instantly lose decades of institutional knowledge, something that you can't buy for all the money in the world. At some point society has to ask what it wants: more targeted advertising, or antibiotics that actually work.
We see this play out right now. Facebook and Google offer faster return on investment than Merck and Pfizer, and that's why stock prices are where they are.
But when you shut down a research facility you instantly lose decades of institutional knowledge, something that you can't buy for all the money in the world. At some point society has to ask what it wants: more targeted advertising, or antibiotics that actually work.