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This is simply because investors will have to look into past activities of the business such as the y business trend analysis to know the various performance of the business and based on this they can make future projections about the company to note whether it is profit worthy and as such there is a need to invest in it or to neglect the venture. Investors contribute a lot of funds into the running of business and will need to measure their risk of investing in the business. The only information that would be readily available to investors will be past records or historical data, which shows the true reflection of the business in terms of performance, profitability and productivity. An investor can only make decision to invest when he has knowledge of the trend within which the business has operated over the years, and this would therefore help make better future analysis of the business since history tends to repeat itself, If the company knows what it was doing in the past it is more likely to perform in the future

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Q: Why do investors bother to look at the historical performance of a company when future behavior is what really counts?
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