Recently, I came across an article by chance and felt that as financial professionals, it is necessary for us to maintain a contextual understanding of the definition of our goals. The article mentioned: "When we say 'profit maximization,' we mean maximizing the present value of future profits, not just today's profits." This statement precisely reveals the risk of common misinterpretation in practice and the hidden danger that goal setting may deviate from its original intention.

This viewpoint originates from an analysis by Business Insider (original link), whose core is to remind us that excessively pursuing short-term book profits may instead harm long-term value creation. This phenomenon of "too much profit" often stems from a mechanical understanding of the principle of "shareholder value maximization."

In financial practice, we often simplify "shareholder value maximization" to "the higher the profit, the better," while ignoring the time dimension and risk adjustment of profits. True value maximization should be based on the discounting of future cash flows, not on the surplus of a single accounting period. If we only focus on current period profits, companies may sacrifice R&D investment, employee welfare, or customer relationships, ultimately eroding long-term competitiveness.

Therefore, this article is not only a theoretical discussion but also a mirror, prompting us to re-examine our own decision-making frameworks. As financial practitioners, we should be wary of narrowing "goals" into "number games," and instead return to the essence of value creation—that is, through sustainable business models, maximizing the net present value of future profits.

Perhaps this is exactly where the industry needs continuous reflection and reassessment: Are we pursuing "doing the right things," or merely "doing things right"? When profit indicators conflict with long-term strategy, can we adhere to the original intention of value investing?

In summary, shareholder value maximization should not become a fig leaf for short-termism, but rather a compass for long-termism. I hope to take this opportunity to encourage fellow professionals to jointly deepen our understanding of financial goals.