Vishal Khandelwal :
- A management that has a history of borrowing money to grow its business will keep borrowing. A CEO who is a serial acquirer will keep acquiring companies left, right, and centre. Someone who has a history of going overboard with future plans will continue to go overboard with future plans.
- until you as an investor get demonstrated proof of the management’s change in behaviour (from bad to good) – not just language but a real change – just smile and nod and not believe a word they say.
- You must assess or talk to a company’s management to understand its past behaviour – capital allocation record, business ethics, and shareholder friendliness…and to assess whether they are the right people to guide the business in the future.
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