Not for management teams....
We are human. Human beings make mistakes. We make lots of mistakes. We’re always trying to identify and eradicate them, but they happen. As we investigate fundamentals, much of our work revolves around meeting with management teams, and developing conviction in their ability to steer a business down the road. We’ve certainly been guilty over the years of becoming slightly too enamoured with a specific investment idea or management team on occasion, and doing so of course led to a clouded view, which we’d rather avoid.
To put it simply, there is very little upside to becoming married to a particular company or management team. This might make sense on the sell-side, where strong corporate relationships can lead to profitable banking business. However, with apologies to Lionel Ritchie and Diana Ross, there is no room for endless love on the buy-side.
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