The History of Active Investing

The video discusses the concept of activist investing, where investors buy significant shares in a company to influence its management and operations. It highlights the strategies used by activist investors, such as restructuring and board changes, and mentions notable figures like Carl Icahn and Nelson Peltz. A case study of Peltz's involvement with Procter & Gamble illustrates the potential impact of activist investing, showing how Peltz's actions led to operational improvements and a significant rise in stock value.

What was one of the early actions taken by activist investors?

• Convincing companies to sell off non-core assets

• Buying a company outright

• Firing all the management staff

• Merging with other companies

Which of the following is a common goal for activist investors?

• Improving company efficiency

• Reducing company size

• Increasing company debt

• Expanding into new markets

Which of these is NOT a strategy used by activist investors?

• Restructuring the company

• Gaining a seat on the board

• Targeting well-managed companies

• Selling off parts of the company

Who was the activist investor involved with Procter & Gamble in 2017?

• Bill Ackman

• Paul Singer

• Carl Icahn

• Nelson Peltz

What was one of the outcomes of Nelson Peltz's involvement with Procter & Gamble?

• The company followed all of Peltz's suggestions

• The company improved its earnings growth

• The company expanded its bureaucracy

• The stock price decreased