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

To: Sergio H who wrote (3030)	5/9/2013 2:57:26 PM
From: bruwin	1 Recommendation Respond to of 4720

Yes, I'd say that experienced, as well as committed, management is an important factor for Buffett. The one thing that Buffett doesn't like to do is to get personally involved in the running of the companies that he owns. He came to that conclusion in his thirties when a company that he bought a controlling interest in, Dempster Mill, had to be downsized and he had to cut the labour force. Due to the fact that Dempster was located in a small community, cutting the labour force caused problems with the labour unions. After that experience Buffett decided that from then on he would find businesses with management that he could trust enough to leave in place. Although one or two of the current top execs. haven't been in their current positions for a relatively long time, they have, at least been with Colgate for many years, have risen through the ranks and should therefore have a good understanding of how things "work" in the company. If we think of what is probably Buffett's favourite company, Coca Cola, they've had two CEO's since 2004 (Isdell and Kent), both of whom had spent many years with Coke prior to their appointments as CEO. Before them it was Goizueta, another long term employee who rose up the ranks.