The days of company boards making decisions in isolation from their shareholders have long gone, and investor expectations are rising across many cultural and social issues.
Tag Archives | company management
Watching the commitment to buying shares by senior executives and board members can be a powerful pointer to company prospects, but investors need to read the right signs.
Australian companies have a long and frustrating history of wasting billions of dollars of capital on overseas dreams, and institutional investors should be taking a harder line to protect their capital.
A reader responded with detailed comments on the need for board members and the Chair to have relevant expertise in the company’s industry. Please join the debate.
A company site visit can reveal far more than an annual report or a presentation in an office, and it’s the hidden insights that are easy to miss that are the most valuable clues.
The surprising fact from this study of profitability is that there’s no such thing as a ‘bad’ industry, only inadequate or inappropriate management.
The market’s fixation with whether companies are meeting, exceeding, or falling short of quarterly financial targets is inhibiting market efficiency. Investors would do better focussing on long-term prospects.
Although companies adhere to a continuous disclosure regime, it’s hard to replace the value of company visits for active managers, who glean insights and understandings that financial reports and ASX statements fail to convey.
When assessing the quality of a business, all the statistics, ratios and reports in the world cannot give you an accurate view of the human element of its management.
The market rewards companies it thinks allocate capital well and similarly punishes those who don’t. It tries to anticipate the future and thus the changes in future returns on capital before they happen.
The Senator’s ICAC appearance this week was a fascinating study into the responsibilities of a company director. Every current or aspiring director should read the verbatim discussion in this article.
If a company is growing, with increasing equity and profits, how does an investor know that management and the board are dudding shareholders?
There are reasons why small cap stocks have a history of long term outperformance, although recently, the preference for defensive large cap yields has dominated.
* The full text of dismissed Groupon CEO’s final email to staff, with main message: “Have the courage to start with the customer.”