Corporate thinking is probably too short-term

“Nevertheless, it’s not been established that American corporations are on average more short term within their thinking than they ought to be.
Perhaps most significantly, it is frequently better and easier to plan for the shorter term. In information technology, the average life of a corporate strength is about six years it is about 11 years, and for consumer products around 12 to 15 runs. Very often it is difficult for a business to plan its operations beyond those time periods, as the U.S. market is no longer based on durable production machines. Production has shifted toward service sectors with advantage lives that were comparatively brief, and that may call for a shorter-term orientation.
Many tech startups have high valuations even though sales is low or zero. Those judgments may or may not be right, but certainly, investors are trying to estimate longer-run prospects. During the dot-com bubble of the 1990s, there was too long run, pie-in-the-sky thinking and not enough focus on the present that is real.

Read more at Bloomberg.