When investing in companies, we effectively transfer our trust into company management to allocate our capital in a way that benefits us as shareholders.
Therefore, investing money with only the highest quality and trustworthy management becomes paramount.
Characteristics of High Quality Management
- Excellent capital allocators
- Thinking for the long-term, not next quarter
- High integrity
- Excellent track record
- Compensation structures aligned with shareholders interest, not short-term share price increases