Shareholder‐value proponents claim a new, economically sound way to maximize profits, create wealth, measure performance, and reward executives. That invalid claim is dangerous. Stocks of shareholder‐value firms appreciated barely 15 percent as much as another, time‐tested strategic‐management system. Shareholder‐value strategies are easily countered. Shareholder value mis‐allocates resources, revives old fallacies, and debases the reputation of economics as a useful business discipline.