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Are Activist Investors Ever Good for Shareholders?

Thursday - 3/28/2013, 1:28pm  ET

In the video below, The Motley Fool speaks with Roger Martin, strategy expert and dean of the Rotman School of Management at the University of Toronto. We discuss activist shareholders, which have been increasingly in the news lately with companies like Herbalife, Dell, and J.C. Penney. The question many individual investors are asking is: Are these activist investors good for the stocks that I own? Martin explains that they will likely create short-term value, but long-term investors should be wary of activist investors.

A transcript follows the video.

The full interview with Roger Martin can be seen here, in which we discuss a number of topics including Bill Ackman, innovation, corporate responsibility, executive compensation, and how to pick out great companies. Martin is the coauthor of Playing to Win, a new book focusing on strategy written with former Procter & Gamble CEO A.G. Lafley.

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