A small number of companies create wealth: as for the rest, investors beware!
Excellent point, James.
Incentives are what truly drive decisions. Munger already said as much.
Now the key question: How can we change this corporate mindset?
You don't date an overweight girl and ask her to go on diet. If you want a slim girlfriend, date a slim girl.
Same with corporate management.
If you want to be invested in a well run company, don't invest in one that is poorly managed.
Use this as a screener and you'll eliminate more that 80% of listed companies. A valuable filter!
Awesome to read.
Excellent point, James.
Incentives are what truly drive decisions. Munger already said as much.
Now the key question: How can we change this corporate mindset?
You don't date an overweight girl and ask her to go on diet. If you want a slim girlfriend, date a slim girl.
Same with corporate management.
If you want to be invested in a well run company, don't invest in one that is poorly managed.
Use this as a screener and you'll eliminate more that 80% of listed companies. A valuable filter!
Awesome to read.