Originally Posted by
bullfrog
It seems to me that certain fund managers got their knickers in a twist about under-performance in a boom. If you can't make money in a boom, when can you make it? Just a few thoughts about booms...
In a boom, companies are tempted to ramp up, expand, recruit, borrow. It's a boom, there's a shortage of skilled staff, so unskilled staff come on the books, quality suffers, product is returned, deadlines missed, penalties ensue, profits disappear....
MPG, I hope, are looking at the long term, not compromising quality, delivering on time, not expanding simply to meet demand, and therefore, not making big profits in a boom, but making sure they will still be around in the bust.
You want a tortoise in this sector, not a hare.