I find that one of the best telltale signs is to go back over 10 or 12 quarters and see whether or not management has delivered on their guidance or promises. I don’t know how many companies I’ve seen where management pivots away from prior guides with zero pushback from analysts.
The management and governance aspect of evaluating a business is something that a lot of investors know how to do well. Great piece!
Hi Todd, a new reader of your substack here. Can you recommend some good books/articles (other than Seven Signs) that links corporate governance/quality of management and security analysis/valuation?
I find that one of the best telltale signs is to go back over 10 or 12 quarters and see whether or not management has delivered on their guidance or promises. I don’t know how many companies I’ve seen where management pivots away from prior guides with zero pushback from analysts.
The management and governance aspect of evaluating a business is something that a lot of investors know how to do well. Great piece!
Thanks!
CEOs who cheerlead for the stock publicly (e.g. earnings calls and/or conferences) instead of keeping their remarks focused on the company.
Think RTX on their recent 3Q earnings call when the CEO said, “It’s time to double down on our stock.”
I was pondering a purchase of shares for the Defense exposure, but not now. That was a JV act by a CEO who should know better.
Hi Todd, a new reader of your substack here. Can you recommend some good books/articles (other than Seven Signs) that links corporate governance/quality of management and security analysis/valuation?