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| From: | "Wedde, John" <john.wedde@cit.ac.nz> |
| Date: | Wed, 21 Feb 2001 11:22:21 +1300 |
Ben,
Hear what you say and the Microsoft example is a good illustration of a
success story but what about all the other examples
where the "vision" has not been followed up with the results. To invest in
someone's vision is speculative, and MAY produce fantastic results but it's
surely safer to invest where a solid track record already exists.
I think I'm becoming more conservative --- the years are catching up on me!!
Cheers,
John
-----Original Message-----
From: Ben Dutton [mailto:bendutton@sharechat.co.nz]
Sent: Wednesday, 21 February 2001 11:01
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] Know your company's
management? A contrarian view
Hi John, Yes, that is absolutely true - he certainly isn't
contrarian when
it comes to traditional fundamentals, but he is different in
that he will
not fraternise with management in case they spout
"propaganda". While this
may work for him, I don't necessarily agree with this
approach. I think a
healthy balance of fundamentals and "intangibles" (like
knowing what
management is like) can be achieved and, in some cases,
knowing the
management of a company and their vision is an absolute
must.
For instance, when looking at investing in a new business or
industry with
no previous track record or earnings to compare or study one
has to believe
in the management and their vision.
Lets take an obvious example and look at Microsoft. Who
would have thought
that when MS was first founded those kids were on to
something? Well, some
investors believed them - and have benefited enormously.
But, these
investors had to believe that the PC would rise to dominate
our society -
and Bill Gates, Paul Allen and co. had to persuade them that
this would be
the case. People like Robert Olstein would have missed out.
But, admittedly, Mr Olstein is a trader, and the stocks he
seems to favour
do have track records and industry comparisons for earnings
etc. So maybe
this approach works for him, but it certainly can't be
applied to all
investing.
Best Regards
Ben Dutton
----- Original Message -----
From: "Wedde, John" <john.wedde@cit.ac.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, February 21, 2001 10:40 AM
Subject: RE: [sharechat] Know your company's management? A
contrarian view
> Hi Ben,
> Good article. Don't you think most of his arguments were
based on good old
> fundamentals though?
> >From where I see it there is nothing really more
important when assessing
a
> company than the Balance Sheet and the Income Statement.
One of my most
> important maxims has always been to judge people on what
they do, rather
> than what they say, or, as the old saying goes "actions
speak louder than
> words".
> Cheers
> John
>
>
>
> -----Original Message-----
> From: Ben Dutton [mailto:bendutton@sharechat.co.nz]
> Sent: Wednesday, 21 February 2001 07:42
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] Know your company's management?
> A contrarian view
>
> Came across an interesting article in Forbes magazine the
> other week - check
> it out here:
>
> http://www.forbes.com/global/2001/0219/065.html
>
> It's about a fund manager in the States who, considering
the
> size of his
> fund, takes an unusual approach to his investments. His
> secret? Don't
> interview the management of a company. Here's an excerpt:
>
> '"Why should I talk to the ministers of propaganda?" he
> says. "I want to see
> what people do, not what they say." Instead, he says, look
> at the financial
> statements, especially footnotes.'
>
> Interesting approach.
>
> Best Regards
>
> Ben Dutton
> (Disc. I still like to know the management - but the
article
> did make me
> think).
>
>
>
>
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