Posted by: donmihaihai | April 6, 2021

I like

I like companies that have competitive advantages.

I like companies that is doing well. Doing well not just in good times but in bad times as well. Doing well in term of better than competitors. For example, during down-turn, the company averaging of say 5% ROE where many competitors are swimming in reds. That is doing well. I like to spot good companies during bad times.

I like companies where the management is fair and I want my money to bet on management who is fair. To be fair, I don’t know whether the company is fair to customer/supplier.  While I do know the remuneration of directors/management and non-management and unless the amount of remuneration is so huge that became the elephant of the room, it is hard to know if the remuneration is fair. But over time I thinks are companies is fair when the amount of remuneration jumps along with yearly profit. This fluctuation has to be about the same across the board or management has to take more pain than non-management during down turn if they receive higher upside during good time. Companies where management get big increase in remuneration at the moment of green shoot leaving the non-management behind are those that I don’t like.

I like companies that is not constantly in the news.

I like Biden like not Trump like companies. “You guys are great and I have make XYZ greater like never before”


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