What Would Buffett Do/Buy?Definitely NOT CLQ....
“Inevaluating people (for company management), you look for three qualities: integrity,intelligence, and energy. And if you don’t have the first, the other twowill kill you”
When investingin a business, Buffett seriously considers the people managing thecompany. Integrity isan important quality that Buffett looks at. A management with integritywill run an ethical business and will not get into trouble with the law.In addition, customers will be satisfied with the products or servicessince the management sincerely wants to create value for the customers.Businesswithout integrity will eventually meet it’s downfall – Enron, Ponzischeme businesses, Madoff, etc. Buying shares of these companies whosemanagement are capable but lacked integrity, is as good as owning a timebomb. Definitely NOT CLQ
Sound management
Warren Buffett’s continuing theme
If there is one theme that continually runs through the public statements of WarrenBuffett it is the principle that investor should only consider for investment companieswith managers of competence and integrity.
What Warren Buffett looks for in company management
Warren Buffett has identified aspects of management that he looks for in companies inwhich he invests. They include:
- Capability in allocation of capital
- A conservative approach to debt and liquidity
What Buffett does not like in company management
Warren Buffett has, throughout his career of public announcements, identified somethings that he does not like in company managers:
- Managers who expend too much of the company’s worth by issuing valuable shares to buy overvalued assets or who use debt to do so.