I don’t understand what the point is. You have the option already to hold on for 5 years+. Many people do this (especially employees with vesting schedules) and they are rewarded for doing it.
> is why people talk about the short term quarterly focus of Wall Street.
This is a false meme though. Tesla was worth more than multiple profitable long standing car manufacturers combined before it ever turned a profit. Investors fixate on short term performance when the company has no long term vision and deriving cash flows is much easier (e.g. a container ship holding company).
> You have the option already to hold on for 5 years+.
The difference is having the option. :) Behavior tends to be different if you don't have the option to sell during a window of time.
In this hypothetical case it might serve as a built-in grace period. Companies that otherwise might have failed if measured and punished quarter by quarter might have time to build a product over five year time horizon.
> is why people talk about the short term quarterly focus of Wall Street.
This is a false meme though. Tesla was worth more than multiple profitable long standing car manufacturers combined before it ever turned a profit. Investors fixate on short term performance when the company has no long term vision and deriving cash flows is much easier (e.g. a container ship holding company).