>The part about the managers understates the facts.
>As a former CFO I can attest that anyone who thinks that managers have the shareholders' interests at heart has never been a manager.

No matter what else may differ from case to case, one thing always re-emerges: everybody, sooner or later, stop doing what they are supposed to do and start doing what they are paid for. So these guys, for example, can boast a few magnificent projects (hiding the devil in the details under the carpet) and move on to the next victim, aka company, when those projects fail. Because they get paid to push such projects through, which gives high hopes to investors, who love high hopes as these increase the value of the stock. Temporarily, yes, but those who didn't sell on time are fools, and those who sold on time have found fools, so managers did what they were paid for. If the company went bust, oh well, it happens.

Next in line are your investment brokers, who get paid if they make money for you, and per transaction. And what if they serve the both sides in a transaction (perhaps making a deal via old roommate who serves the other) - today one wins one gets transaction fee; tomorrow we change sides, and we've both performed well and made oodles of money.