Studying the attributes of the company's management

[baller18]

Hey guys,

What is the best way to dig up information on the company's management?

Yes, there's the internet which has profiles of the high level management and etc...

But, how do we seek out information in regards to integrity and etc?

Is the best way through AGM's?

[BIRMANBOY]

Swing past the GCSB office..they may be able to help you.:scared:

[baller18]

Swing past the GCSB office..they may be able to help you.:scared:

Really? and this will tell me if the management is rational?
Candid with shareholders? Management who behave like owners??

[baller18]

For example, what management do with the excess cash, can tell us if the management behaves irrationally or rationally. Good management also rewards staff, shareholders and the list goes on..

Just wondering, if there is any other info out there we can look for in regards to the company's management? Rather from announcements and annual reports?

[percy]

For example, what management do with the excess cash, can tell us if the management behaves irrationally or rationally. Good management also rewards staff, shareholders and the list goes on..

Just wondering, if there is any other info out there we can look for in regards to the company's management? Rather from announcements and annual reports?

The only way I know is to read as much about a company as you can.Go to the last couple of annual reports and read both the chairman's and the CEO's reports.Then compare what they say they will do,with what actually has happened.A lot of companies like ABA,AIA,EBO,FRE,HNZ,POT,RYM,SUM have a history of achieving what they say they will do,while others like PPG,and RNS don't.

[CJ]

For example, what management do with the excess cash, can tell us if the management behaves irrationally or rationally. Good management also rewards staff, shareholders and the list goes on..Most of those are dictated ultimately by the Directors, so looking into their current and past board appointments.

For example, Jenny Shipley is on the board of Synlait so how have her previous appointments been. Mainzeal didn't go well but what that because of the shareholders or the BoD?

Likewise, John Palmer who previously had a very good reputation has been effected by Solid Energy.

[percy]

Most of those are dictated ultimately by the Directors, so looking into their current and past board appointments.

For example, Jenny Shipley is on the board of Synlait so how have her previous appointments been. Mainzeal didn't go well but what that because of the shareholders or the BoD?

Likewise, John Palmer who previously had a very good reputation has been effected by Solid Energy.

Bad enough having Ruth Richardson as a director of SML,but to threaten us with Jenny Shipley is a bit much.!! lol.

[CJ]

Bad enough having Ruth Richardson as a director of SML,but to threaten us with Jenny Shipley is a bit much.!! lol.oops - did I get my Iron Lady's mixed up.

[baller18]

Thanks guys!!! Deeply appreciated!!!!
Love this place!!!

[Winston001]

Warren Buffet says you should talk to the ordinary people who work in the business. Make some phone calls, say you are looking at a job or something, and chat to receptionists/anyone to see what their attitude is. Go to the loading dock and talk to the guys on the ground and the customers.

Quite often a bright shiny business will have unhappy staff. That can be an indication of dysfunction.

[winner69]

Baller (sometimes I call you bagger cause that is what spell check does .....sorry)

Read up on the halo effect

Google 'halo effect investing' for some interesting reads

Leaders / companies can do wrong if the halo shines .....but that halo can go out pretty quick and on times punters just can't understand why something so beautiful went so wrong

[baller18]

Thanks Winston and Winner! Will definitely read up on halo effect! Trying to read and study as much as i can. Lol @ naggernagger

[bmrm]

Good advice above but just to add my two cents, particularly as you were talking about lower-profile managers with less information online:

The Companies Office
Is someone a director of multiple companies?
If they have previous directorships are those companies still trading?
Do the names of companies look legit? (I'm not talking about fraud or anything, but you can get a good sense of whether a manager is more interested in complex corporate structures than actually adding value to a business)
Have they shared directorships/shareholdings with anyone dodgy?

This obviously can only tell part of a story, but approach it as another tool when you feel additional vetting is needed.

[baller18]

Good advice above but just to add my two cents, particularly as you were talking about lower-profile managers with less information online:

The Companies Office
Is someone a director of multiple companies?
If they have previous directorships are those companies still trading?
Do the names of companies look legit? (I'm not talking about fraud or anything, but you can get a good sense of whether a manager is more interested in complex corporate structures than actually adding value to a business)
Have they shared directorships/shareholdings with anyone dodgy?

This obviously can only tell part of a story, but approach it as another tool when you feel additional vetting is needed.

Thanks heaps!!!