Note: This Blog post has been extracted from my Q2 2017 Portfolio Update and my Q3 2017 Portfolio Update. The studies were performed during 2017 and, although the basis of my analysis has not changed, my verdicts have not been updated for subsequent events.)
14 January 2019
By Maynard Paton
This Blog post outlines how I evaluate company management and uses my share portfolio for examples.
As I have stated in How I Invest (my bold):
“I want my investments to be led by loyal and capable bosses that have served in the top job for several years. I want to see improvements to profits and the dividend throughout their leadership. Better still is the founder/entrepreneur boss, who set up the firm in the first place, has led it ever since and has therefore shown even more commitment to building the business.”
For the first part of the study I assess management loyalty and commitment (through a sizeable ordinary shareholding). I then look at management capability and track records.