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because he has delivered massive profits, and thus market players, even if they are unhappy not to be given the information and "behavior" they expect, are motivated enough by these profits to buy thr shares.

He has the 'luxury' of strong results (possibly made possible by the longer view taken by the family shareholders) to brush off the usual requests for short term performance standards (including cutting costs and the like).

But the point is that he has proved that some of these 'costs' (i.e. in his workers) are actually smart investments. Of course, that lesson will not be remember in any systematic way by investors.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue May 15th, 2007 at 05:03:48 AM EST
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I entirely agree that by the standards of our day Wiedeking is an extremely farsighted and insightful manager who understands the importance of long-term thinking. Certainly other corps would do well to follow his example.

I was merely noting that given the Porsche ownership structure, he can tell the market playas to go pee up a rope as long as he has the family behind him. (Wikipedia notes that "As of 2005, the extended Porsche and Piech families controlled all of Porsche AG's voting shares.".)


The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt ät gmail dotcom) on Tue May 15th, 2007 at 05:20:34 AM EST
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Well. lets take one step back and look at the big picture. The current economic climate is very favorable to luxury items. Sales of luxury cars, Porsche included, have broken consecutive records during the last few years (using Portugal figures, here).

So i have the feeling that some of his success comes from other CEO's not acting like he does.

by Torres on Tue May 15th, 2007 at 06:13:24 AM EST
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