Past Returns on Capital over References The Business Should Always be the Primary Focus

Significance of Share Ownership

The historical record on how they allocate capital – acquisitions, divestitures, buybacks, etc. – is ultimately most important to shareholder value, but we also pay attention to the level of management and director share ownership and whether they’re buying or selling. We mean real share ownership, not just options. It’s rare to see excellent capital allocation without significant share ownership.