Hands-On Investor


DEFINITION of 'Hands-On Investor'

An investor who holds a large portion of a company's shares and takes an active management role. A hands-on investor can also be called a majority shareholder, or activist shareholder. Such investors see their ownership stake in a firm as the reason to become actively engaged in the firm's decision making process.

BREAKING DOWN 'Hands-On Investor'

The majority shareholders are usually hands-on investors and have a great influence on the company's management decisions. This may or may not lead to tension with company managers, who typically prefer not to be directed by single shareholders, especially when such shareholders do not have the same level of experience or business acumen as company management.

  1. Warren Buffett

    Known as "the Oracle of Omaha", Buffett is Chairman of Berkshire ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Active Management

    The use of a human element, such as a single manager, co-managers ...
  4. Hands-Off Investor

    An investor who prefers to set an investment portfolio and make ...
  5. Equity Risk Premium

    The excess return that investing in the stock market provides ...
  6. Alpha

    Alpha is used in finance to represent two things: 1. a measure ...
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