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18-10-2014, 11:47 AM
(This post was last modified: 18-10-2014, 04:58 PM by CityFarmer.)
I believe in the phase "用人不疑,疑人不用" (translation: In doubt don't use, or use them without doubt).
Once I have decided that the management team is trust-able, I will stay vested and let them run the show. Anyway, I have a regular yearly review session, to either walk-away, or stay, freely and cheaply.
I believe that the "又要马儿跑,又要马儿不吃草" isn't feasible, personally.
Sharing a view and comments are welcomed
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Same thinking as you, Generally, if you don't trust them, why should you even bought the companies shares in the first place? Just to add on another saying, 没有永恒的朋友，也没有永恒的敌人，只有永恒的利益 which means that""There is no forever friends and foe. only forever interest (Benefits)".
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(18-10-2014, 11:47 AM)CityFarmer Wrote: I believe in the phase "用人不疑,疑人不用" (translation: In doubt don't use, or use them without doubt).
Once I have decided that the management team is trust-able, I will stay vested and let them run the show. Anyway, I have a regular yearly review session, to either walk-away, or stay, freely and cheaply.
I believe that the "又要马儿跑,又要马儿不吃草" isn't feasible, personally.
Sharing a view and comments are welcomed
吃草 is ok... Question is when to draw the line when they are gurgling birds nest while shareholders 望穿秋水
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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(19-10-2014, 03:48 PM)specuvestor Wrote: (18-10-2014, 11:47 AM)CityFarmer Wrote: I believe in the phase "用人不疑,疑人不用" (translation: In doubt don't use, or use them without doubt).
Once I have decided that the management team is trust-able, I will stay vested and let them run the show. Anyway, I have a regular yearly review session, to either walk-away, or stay, freely and cheaply.
I believe that the "又要马儿跑,又要马儿不吃草" isn't feasible, personally.
Sharing a view and comments are welcomed
吃草 is ok... Question is when to draw the line when they are gurgling birds nest while shareholders 望穿秋水
It is a difficult task, even for experience investor. It is definitely a qualitative measure, and more than an art than a science.
I reckon the right time to draw the line is during the DD, with inputs of past reputation and historical events.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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19-10-2014, 09:21 PM
(This post was last modified: 19-10-2014, 09:21 PM by Nick.)
Don't really understand why retailers buy shares in a company and hope by making some noise, the Management will change their spots. It won't happen. An exercise of futility.
Stick to Management whom you are comfortable with and one whom you can trust to work for both of your interests. You ride with sharks, you will most likely get slaughtered. Not many are blessed with the skill-set to be a remora. I certainly am not !
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Don't think most rational investors will buy shares and hope to change the management by making noise. I think most investors make noise because they discovered certain behaviour of the management they didn't know before they bought the shares. And in that case, it is better to vote with your action, ie, divest and walk away，志不同，道不合，不相为谋。
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(19-10-2014, 09:32 PM)Ben Wrote: Don't think most rational investors will buy shares and hope to change the management by making noise. I think most investors make noise because they discovered certain behaviour of the management they didn't know before they bought the shares. And in that case, it is better to vote with your action, ie, divest and walk away，志不同，道不合，不相为谋。
Indeed, only sharks can try to swallow up fellow sharks (Carl Icahn?). Other small fish better learn to avoid and cut loss if necessary.
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(19-10-2014, 11:23 PM)weijian Wrote: (19-10-2014, 09:32 PM)Ben Wrote: Don't think most rational investors will buy shares and hope to change the management by making noise. I think most investors make noise because they discovered certain behaviour of the management they didn't know before they bought the shares. And in that case, it is better to vote with your action, ie, divest and walk away，志不同，道不合，不相为谋。
Indeed, only sharks can try to swallow up fellow sharks (Carl Icahn?). Other small fish better learn to avoid and cut loss if necessary. Or someone has said, "Try to be a Remora of shark species". In this way you can swim with the sharks without being eaten by them. Unfortunately some are still eaten by them. The blumont, S-chips, etc...
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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