Risks Facing Investors The Most Important Question to ask Management

Examinig Behavior Patterns in Management

We look for certain behavior patterns in management that are consistent with an efficient and prudent guardianship of our assets. If we visit a fan manufacturer in Texas and the CEO meets us at the airport in his Lexus, spends five hours with us and then takes us out to an expensive restaurant and buys $300 bottles of wine, that is suggestive of somebody who isn’t as prudent as we would like.
Source: http://www.valueinvestorinsight.com/