McKinsey survey shows investors seek fundamentals and long-term vision
McKinsey survey shows investors seek fundamentals and long-term vision
https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/mckinsey-survey-shows-investors-seek-fundamentals-and-long-term-vision?
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The latest investor survey underscores the importance of the right metrics and cohesive communications.
The search for stability through a focus on value-creation fundamentals remains a constant for investors—even as they navigate inflation, geopolitical uncertainty, and the rise of AI. Our most recent survey of investor priorities reinforces this enduring theme, showing strong similarities to our 2023 findings, while also revealing a few noteworthy shifts.1
Overall, investors continue to ask for hard data on the fundamentals that signal a company’s long‑term resilience. The previous survey highlighted cost efficiency, capital productivity, and product innovation as the key engines of future value. In the latest poll, respondents leaned slightly more toward headline profitability metrics—especially return on capital. The direction of travel is, therefore, less a wholesale change than a subtle reweighting: As always, investors care about the underlying levers, but in today’s market, they want to see those levers translated into tangible financial outcomes.
Likewise, whereas respondents in the earlier survey focused on sustainable competitive advantage, superior margins, and disciplined capital allocation, the latest survey shows more concern with a broader rubric of overall financial performance and health. This marginal shift likely reflects the prevailing macro backdrop—swings between risk‑on and risk‑off sentiment, shifting interest rate expectations, and concerns over inflation—rather than a fundamental change in what long-term-oriented investors deem important.
Perhaps the most notable difference since our last survey (see sidebar, “Our methodology”) is the new importance of AI. In the most recent survey, 31 percent of respondents cite “AI and technology utilization” as a characteristic of a winning company in 2025. In our 2023 findings, AI never came up as an important feature to which investors were paying attention, reflecting a rapid sea change in how investors view the role of technology. Also of note is a downtick in concern with environmental, social, and governance (ESG): In our prior survey, 20 percent of respondents said they consider ESG a top driver of long-term value creation. In the latest survey, only 18 percent of respondents rate it “very” or “extremely” important.
This article explores the latest survey’s findings and examines investor preferences in today’s complex financial landscape. We conclude by outlining actions that companies can take to ensure that they foster an optimal dialogue with their investors.
How investors assess a company: Performance data, long-term metrics, and the equity story
Granular performance data builds credibility, but it’s the broader equity story that captures attention and inspires conviction. Respondents made it clear that they value consistency across all investor communication touchpoints and want all information to clearly tie back to the company’s equity story. To assess performance, survey results showed—unsurprisingly—that investors rely heavily on EBITDA, followed by ROIC and EBITDA margins (Exhibit 1). To assess an investment’s long-term potential, investors lean on metrics that inform them about return, growth, and profitability. The equity story heavily influences their view of an investment, survey results show.
Exhibit 1.
Metrics investors rely on to evaluate a company’s long-term strategy
Across industries and company types, respondents prioritize return, growth, and profitability as the foundation for evaluating a company’s long-term potential (Exhibit 2). These metrics serve as universal benchmarks for value creation, enabling investors to assess whether a company’s strategy is positioned for long-term success.Exhibit 2.
Crafting an equity story that inspires
It’s crucial for companies to create a compelling equity story that clearly articulates how they create value today and how they plan to grow profitably over time. A majority of respondents consider an unattractive equity story a highly significant factor in an investment’s relative appeal (Exhibit 3).
Exhibit 3.
By tying metrics to the equity story in a transparent and compelling way, companies can build investor confidence and strengthen the case for why they should remain committed for the long term.
What investors want from interactions with companies
Prior McKinsey research has indicated that investors feel that there is room for improvement in how companies communicate about their stories. In this year’s survey, over 90 percent of respondents said they believe a company’s equity story should align with other investor communications and guide the content of capital markets and investor days.
Companies can work on delivering these consistent messages on these days, on quarterly calls, and at each touchpoint with investors. Elevator pitches, in particular, demand improvement: 21 percent of respondents identified them as the most “insufficiently communicated aspect that is most crucial to address.” This feedback reflects a common challenge: Even within the same executive team, members may present differing versions of the company’s core narrative. Such inconsistencies can undermine investor confidence, creating the impression of a lack of strategic cohesion. To build trust and ensure the market receives a unified message, it’s essential for management teams to align on a single, compelling equity story that is consistently communicated at all levels and across all investor touchpoints.
What investors want out of capital markets days
Survey respondents identified capital markets days as a vital point of contact: 56 percent rated them as “important” to understand a potential investment’s prospects, and another 20 percent rated them as “very important.” More than 90 percent of respondents expressed a preference for a narrative that includes just a long-term perspective or both short- and long-term perspectives (Exhibit 4). This finding aligns with McKinsey’s long-standing research that shows that intrinsic investors are most focused on the long-term drivers of value creation.
Exhibit 4.
The characteristics of best-in-class quarterly calls
Over half of survey respondents consider the “materials shared” to be the most important factor in a quarterly call. More than a fifth cited “speakers” as the most important. By contrast, format and structure were rated as only moderately important, cited by 11 and 8 percent of respondents, respectively.
Interestingly, one-on-one follow-ups after quarterly calls were of limited interest to investors. This may reflect that investors (not to be confused with equity analysts) may simply not need much explanation from investor relations executives after a quarterly call. However, additional responses show that investors highly value unscripted time with company decision-makers and more participation from company executives (Exhibit 5).
Exhibit 5.
These are messages we’ve heard before: In our 2023 findings, respondents cited more time for Q&As and participation from a broader array of executives as top areas for improvement.
What mattered most to investors at the time of the survey—and what always matters
Large numbers of respondents cited geopolitical risks, inflation and interest rates, and government regulations and political risks as their top concerns for the 2025 investment climate. It’s interesting that these concerns were top of mind in December, even before tariffs became a common preoccupation (Exhibit 6).
Exhibit 6.
Additional responses showed that investors predicted that AI would be a key investment theme this year and that they perceive companies with a clear tech angle as more successful (Exhibit 7). By contrast, 82 percent of respondents indicated that they do not consider ESG factors to be a “very” or “extremely” important factor in an investment’s attractiveness.
Investor communication groups can keep the list of what worries and excites investors in 2025 in mind as they communicate about the areas investors use to gauge company attractiveness (Exhibit 8). Investors scrutinize six main areas, of which the top five are addressable by companies themselves.
Key actions for companies
To effectively highlight value creation and position themselves as attractive investment opportunities, companies can ensure their narratives are firmly anchored in the right financial metrics. This includes focusing on fundamentals, such as ROIC to demonstrate returns and EBITDA to showcase growth. At the same time, companies can tailor their metrics to align with their specific sector or business model. For instance, retention rates are particularly relevant for software companies, while customer acquisition costs may be more critical for consumer-facing businesses.Companies can also supply the metrics investors rely on to anchor on a long-term vision. Equity stories should be clear, supported by these metrics, and consistently communicated across investor interactions.
In addition to robust reporting, meaningful and unscripted interactions with investors are essential. Open Q&A sessions provide a valuable forum for transparent exchange, fostering trust and understanding. Investor relations activities become even more critical during periods of transformation, as they help investors navigate uncertainties and maintain confidence in the company’s direction. Companies can respond to investors’ preferences by using capital markets days to clearly articulate long-term strategies, ensuring investors have a clear understanding of the company’s trajectory and potential for sustainable growth.
Finally, companies can find ways to communicate the issues that are currently of greatest concern while addressing the six areas investors assess to gauge an investment’s appeal.
The survey results are a reminder of how important it is for companies to anchor their narrative in the right metrics, articulate a clear strategy, and foster open dialogue. By combining these actions, companies can effectively engage investors, build trust, and position themselves as compelling investment opportunities.
Scaling luxury: How to pull off intimacy in a 1,000-room-plus,five-star hotel
https://hotelsmag.com/news/scaling-luxury-how-to-pull-off-intimacy-in-a-1000-room-plusfive-star-hotel/
Independent luxury hotels are typically small: The median room count of the hotels in the Relais & Châteaux portfolio for North America was around 40 when I served as president there. At such properties, success at knowing every guest by name and preference seems achievable; the GM can personally greet VIPs and treat every guest as a VIP, too. Doing that with more than 1,000 rooms and 2,200 employees is another thing altogether. How can you achieve the same intimate relationship? I had to figure this out in a hurry.
In April 2021, I took over the reins of the 1,047-room The Boca Raton in South Florida (the largest non-gaming luxury resort operation in North America), with a mandate from management: Lift the hotel to Forbes’ Five-Star standards and a 100% market share against the legacy competitive set. They asked that this be accomplished before the resort’s 100th anniversary, in January 2026. (To make this harder, the hotel was in mid-phase I of a multi-year renovation plan.)
INTIMACY AT SCALE
My strategy for achieving this goal was to segment the property’s 1,000-plus rooms into five distinct “hotels,” ranging in size from 65 to 350 rooms, each with its own identity and subtly different style of service. To accomplish the goal of intimacy, each hotel provides the guests with a dedicated staff and has an ethos and positioning designed to appeal to a specific type of luxury traveler; you could almost call it a “choose your own lodging” product. Individual staffing also means that when a guest needs something or has a concern or challenge, they can be helped by someone they have already met face-to-face. Our experience is that service recovery delivered by a familiar onsite team member offers the best scenario for resolving such situations successfully.
ADVANTAGES OF SCALE
Operating at a larger scale enables delivering an experience that would strain the resources of a smaller hotel. For example, the 400 employees who work our banquet operation have the resources and staffing (what I call “breathing room”) to do remarkable things, like bringing in a beekeeper and hive (yes, the bees were safely encased in a glass dome) to provide the freshest honey. I had nothing to do with the decision to do this, or with its delivery, but the guests were delighted.
Scale allows us to also provide mentorship programs, whereby senior staff across the f ive hotels develop junior talent systematically. It also allows us to hire for specialized roles that smaller properties can’t justify, such as dedicated concierge teams, full-time sommeliers and in-house floral designers, which guests then benefit from.
There are financial economies of scale, too, such as procurement savings on the products we order from vendors—everything from napkins to landscaping supplies.
BRINGING IT BACK HOME
The risk in getting bigger is that it gets easier to attempt to serve every guest in the same way, leaning on what could erroneously be classified as “best practices,” since a fundamental concept of luxury is personalization. The luxury market has proven that guests will pay premium rates for personal experiences, which is what a well-thought-out approach can provide at scale; you just need to watch out for traditional big-box hotel thinking.
How are we doing on our goals? We now have two Forbes Five-Star ratings for Beach Club and our Spa Palmera and we’ve been exceeding our owners’ request for 100% share against our legacy comp set. And we feel comfortable that we will always be exactly the right size for what a particular guest is seeking, with the right human capital providing them the personal experience they are hoping for.
Kyoto to Tax Rich Tourists Starting Next Year
Sean Pavone/Shutterstock
https://www.fodors.com/news/news/kyoto-to-tax-rich-tourists-starting-in-2026
And other travel news you may have missed.
This week in travel, we’ve uncovered several stories that might have flown under your radar. Among them: over 200 climbers are stuck on Everest after an unexpected blizzard; a camper has died in Arkansas in a likely bear attack; and luxury tourists will be paying a whole lot more for their Kyoto vacations in 2026.
Dive into these and more as we examine the latest in travel news.
No 1
TREKKERS STUCK ON EVEREST
More than 200 climbers are stranded on Mount Everest’s slopes in Tibet at 16,000 feet. A blizzard caught them unaware on Friday, and snowfall intensified over the weekend. About 350 trekkers were rescued to the village of Qudang, and locals and officials are working to clear blocked areas.
Several people were caught in heavy rain and snow on Saturday, and many showed signs of hypothermia. “Our windbreakers and raincoats were no match for the snow. We were all drenched,” climber Dong Shuchang told BBC after reaching safety. The experienced hiker also mentioned that he has never experienced such weather. Climbers made slow progress down the mountain, and rescuers are currently guiding the remaining trekkers.
There is no news about hikers being stuck on the north face of Everest in Tibet. Meanwhile, Nepal is also facing extreme weather conditions, and at least 47 people have died due to torrential rainfall and landslides.
NO.2
MUNICH CLOSES AIRPORT AFTER DRONE SIGHTINGS
Thousands of passengers faced disruption last week in Germany’s Munich Airport after drone sightings closed the airport. The incident occurred on Thursday, and the airport canceled 17 flights, affecting nearly 3,000 passengers. Airline staff and airport authorities provided food and blankets to stranded passengers, and the airport reopened Friday morning.
No.3
KYOTO LUXURY HOTELS TO CHARGE $68 TOURIST TAX FROM 2026
Kyoto will levy a tax of 10,000 yen ($68) per person per night on hotel stays costing 100,000 yen ($667) per night or more. This will be the highest tourist tax in Japan, up from the current 1,000 yen ($6.67).
This accommodation charge will be introduced on March 1, 2026, to help support infrastructure and ease congestion.
Other revisions are planned. For stays under 6,000 yen ($40), the tax remains 200 yen ($1.30). For stays between 6,000 and 20,000 yen ($40-$133), the tax will increase from 200 yen to 400 yen ($2.70). For accommodations from 20,000 yen to 50,000 yen ($133-$333), the tax will increase to 1,000 yen ($6.67). For stays between 50,000 and 100,000 yen ($333-$667), it will increase to 4,000 yen ($27).
Japan has seen a high influx of tourists and has taken measures to control crowds, including restricting the Geisha district in Kyoto and imposing fees on Mount Fuji climbers.
NO.4
TENERIFE INTRODUCES ECO TAX
Tourists hiking the trails at Teide National Park in the Spanish island of Tenerife will have to pay up to €25 ($30) as an eco-tax starting next year.
The national park is home to the Teide-Pico Viejo stratovolcano and is a popular destination for visitors. Authorities aim to protect the natural environment during a time of overtourism, so the trails will now require permits and fees.
The charges depend on the number of days, the tour company, and the age of the visitor. Tenerife residents can enjoy the park without charges, and Canary Islands residents will pay a reduced fee.
An unguided trek on Trail 10—which runs from La Rambleta to the peak of El Teide—will cost €15 ($18), while a guided visit will cost €12 ($14). The number of visitors on this trail will be limited to 300 per day. The longer Trail 7 Montaña Blanca will cost €6 ($7) on weekdays and €10 ($12) on weekends.
Trails must be reserved through the Tenerife On website or app.
NO.5
MAN DIES IN ARKANSAS IN POSSIBLE BEAR ATTACK
A 60-year-old man was found dead near his campsite in Arkansas, likely due to a bear attack. The man from Missouri had sent photos of a bear in his camp to his family on Tuesday, and his son requested a welfare check after not hearing from him.
Authorities could not confirm the bear attack without a DNA test, but the injuries are “consistent with those expected from a large carnivore attack,” according to the Newton County Sheriff’s Department. His body showed signs of a struggle and was dragged from the campsite.
The sheriff’s department is trying to locate the bear, and the campground is closed. “We are very early in the investigation and search and will update as we can. If you are in the area, just be aware and use caution, especially with children. History tells us that once a bear becomes predatory, it often continues those behaviors,” warned Sheriff Glenn Wheeler.
In another bear-related incident, a Spanish tourist was injured by a cub in Japan’s Shirakawa-go, a UNESCO World Heritage Site, on Sunday. The victim was attacked near a bus stop when a cub emerged from behind a bush and scratched his right arm. The tourist walked to the visitor center for help and was treated at a hospital. Officials are patrolling the area, and trails have been closed.
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