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Strategies & Market Trends : 50% Gains Investing

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To: Schnullie who wrote (117497)1/10/2014 8:39:38 PM
From: SamRead Replies (1) of 118717
 
Yes, he spent too much to buy that land in Divide County, and the company was damaged as a result. And most of the negative things that you listed can be traced to that bad decision. A bad decision doesn't mean that a guy is a bad manager. Or a fraud. Or a self-aggrandizing blowhard. If I thought that the manager of a company I was considering investing was all of those things, I wouldn't buy stock in that company.

And I don't use the stock price of a company to judge whether or not a guy is a good manager. Stock prices --higher and lower ones -- are often the result of a lot of different factors, many of them out of the control of the management. I judge managers by how they respond to those things, including the decisions that they made that turned out to be bad ones.
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