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Showing posts from February, 2021

How I pick shares- Part 5 (Management)

Bad directors rarely become good directors  Richard Crowe (aka the Cockney Rebel) I listened to an excellent  podcast  recently on PI World with well known investor Richard Crowe a.k.a. Cockney Rebel. He has developed a specialism in buying shares in turnaround situations. In the course of the podcast he talked about several companies which he has invested in recently and how the common denominator was good management. It is a truism that if a company is well run then the cards are stacked in its favour. Conversely bad management means that any company, however great its ideas, will have an uphill struggle if it wants to succeed. To quote a rather memorable phrase from investor Nigel Wray,  a fish usually rots from the head . So what makes a good manager? Warren Buffett has spoken extensively about this. He wrote about Tom Murphy of Cap Cities- such an example: I mean, no one had either the ability -- no one could top his ability or integrity, in terms of the way he ran Cap Cities for