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
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)".
(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
(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.
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 !
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。
(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.
(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...