How to determine if a stock investment has a CEO right for the job

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 44 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 56%
  • Publisher: 92%

Business ข่าว

Company,Value,Ceo

Advice from Warren Buffet on selecting a manager

A few years ago, my students and I visited with Warren Buffett in Omaha. One of the students asked him how he chooses managers. The co-founder and chairman of Berkshire Hathaway said that it was easy: He said I take them for lunch and, if I realize they are there for the money, I do not hire them.

Read interviews from the CEOs: Do they make projections that are off actual performance? Here’s an example: The ex-CEO of General Electric, Jeff Immelt, gave an interview three weeks before the company announced earnings and made a forecast that was way off the actual numbers. While GE was too complex, and difficult to manage, Mr. Immelt still had a credibility problem.

Running a commodity business will lead the company into bankruptcy if the CEO does not understand the business or will save the company if they do. A case in point is Denis Durcotte, who had deep knowledge of the business, and whose hiring saved a struggling Algoma Steel from bankruptcy. On the other hand, running a business with barriers to entry, a manager poorly qualified to run the business will diminish the franchise but will not inflict mortal damage, as Mr. Buffett likes to say.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว
เราได้สรุปข่าวนี้มาให้อ่านอย่างรวดเร็ว หากสนใจข่าว สามารถอ่านฉบับเต็มได้ที่นี่ อ่านเพิ่มเติม:

 /  🏆 5. in TH

ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว

Similar News:คุณยังสามารถอ่านข่าวที่คล้ายกันนี้ซึ่งเรารวบรวมจากแหล่งข่าวอื่น ๆ ได้

UiPath stock is crashing after posting earnings, CEO resignsRobotics and automation software developer UiPath (PATH) is taking a beating as its stock crashes by over 30% after reporting weak second-quarter guidance...
แหล่ง: YahooFinanceCA - 🏆 47. / 63 อ่านเพิ่มเติม »