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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (30098)	2/18/2008 5:12:47 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78665

Family control not a reason for avoiding purchase of Pargesa, imo. 1. There are actually two different families that jointly control Pargesa. They'd have to act in concert - their interests both to be aligned against the small shareholders. Which could happen of course. 2. How active can the families be in Pargesa? Most of the underlying companies are the huge businesses in which Pargesa has minor stakes. They could sell positions, but I doubt they could exploit companies like Total for their own personal benefit. 3. Really, how much do we know about the managements of companies we buy as value investments about how aligned management is with shareholders? Options issues, stacked boards of directors, overly generous perks and salaries. Rampant stuff. 4. This shouldn't be somebody's only investment or maybe even major investment. Diversity reduces the portfolio risk of holding Pargesa.