The biggest criticism of activist investors is that they force companies to return money to shareholders rather than reinvesting it in their businesses. That is likely to hurt those companies and the economy in the long run.

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This is a commonly cited criticism of activist investors. By pushing for immediate returns to shareholders, companies may not have the resources to invest in long-term growth and innovation, which can ultimately harm both the company and the larger economy.

The Biggest Criticism of Activist Investors Is That They Force