Meeting management

If you need to, you shouldn’t hold the stock

The investors in Free Capital have divergent views on the value of meeting company management. 

Bill (Chapter 3) : “I never visit companies, hardly ever go to an AGM, and speak to hardly anyone.”

Sushil (Chapter 5) : “…the relevant question for me is whether, say, six hours spent on a meeting with one company I already own …is more useful than, say, half an hour looking at each of 12 possible new investments.”

Eric (Chapter 8) : “…social interactions with company directors and other investors and contacts are the primary source of [his] edge.”

There’s a succinct rationalisation of Bill’s “no meetings” philosophy in a recent CNBC interview with Warren Buffett:

“In fact, they call me - some of the things we own, they call me and they want to come from thousands of miles away to talk to me. And I say listen, if I need to talk to you, I shouldn't own your stock. I mean, I don't - I don't need to be schmoozed, you know?”

Guy Thomas Wednesday 16 March 2011 at 7:45 pm | | Default | No comments