Comments on: Conrad Black Lessons: Is “Management Integrity” an Oxymoron? II http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 23:42:26 -0330 http://wordpress.org/?v=abc hourly 1 By: Ed Rempel http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm/comment-page-1#comment-11901 Ed Rempel Sun, 09 Sep 2007 22:37:04 +0000 http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm#comment-11901 Hi Nancy, Good point. That is why we only use fund managers that are independent. We essentially won't use any fund manager that is a salaried employee of a bank, insurance company or fund company. Their bosses will usually interfere with their investment strategy. And usually at the worst possible time. When their style is out of favour, their bosses often encourage them to switch to whatever is popular now or put nice looking stocks in their top 10. This means that they won't be there for the early big move when their style comes back into favour. The top fund managers normally set up their own company and then get contracts from fund companies. This means they won't quit, because they own the company. And once they get established, most of the time, the fund companies keep them, especially when they have created a fund specifically for the fund manager. Once you find a great fund manager, if there every is a change in their fund, it is usually worth it to follow them. Ed Hi Nancy,

Good point. That is why we only use fund managers that are independent. We essentially won’t use any fund manager that is a salaried employee of a bank, insurance company or fund company. Their bosses will usually interfere with their investment strategy. And usually at the worst possible time.

When their style is out of favour, their bosses often encourage them to switch to whatever is popular now or put nice looking stocks in their top 10. This means that they won’t be there for the early big move when their style comes back into favour.

The top fund managers normally set up their own company and then get contracts from fund companies. This means they won’t quit, because they own the company. And once they get established, most of the time, the fund companies keep them, especially when they have created a fund specifically for the fund manager.

Once you find a great fund manager, if there every is a change in their fund, it is usually worth it to follow them.

Ed

]]> By: nancy (aka money coach) http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm/comment-page-1#comment-10896 nancy (aka money coach) Fri, 24 Aug 2007 06:16:29 +0000 http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm#comment-10896 I'd be interested in your thoughts on how we figure out who has integrity! It seems to me that unless someone is pretty much independent, their integrity may be boxed in by the company that pays them. Any fund managers who you believe are really solid? I’d be interested in your thoughts on how we figure out who has integrity! It seems to me that unless someone is pretty much independent, their integrity may be boxed in by the company that pays them. Any fund managers who you believe are really solid?

]]> By: Gates VP http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm/comment-page-1#comment-10872 Gates VP Thu, 23 Aug 2007 17:54:26 +0000 http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm#comment-10872 <i>Back when I was an accountant, I learned quickly that management preferred smooth profits and learned all the tricks to make sure our profits were consistent month to month.</i> Thanks Ed, right out of yesterday's comments, but it's good to hear from the inside. Learning to read a balance statement is different from truly understanding a balance statement. Thanks for another post from the front lines :) Back when I was an accountant, I learned quickly that management preferred smooth profits and learned all the tricks to make sure our profits were consistent month to month.

Thanks Ed, right out of yesterday’s comments, but it’s good to hear from the inside. Learning to read a balance statement is different from truly understanding a balance statement.

Thanks for another post from the front lines :)

]]> By: FourPillars http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm/comment-page-1#comment-10863 FourPillars Thu, 23 Aug 2007 13:21:44 +0000 http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm#comment-10863 I agree with George. Another issue is how long do corporate management teams stay with companies? Even if you could identify a top manager, they might not be there in five years. This can also apply to fund managers as well. Mike I agree with George.

Another issue is how long do corporate management teams stay with companies? Even if you could identify a top manager, they might not be there in five years. This can also apply to fund managers as well.

Mike

]]> By: George http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm/comment-page-1#comment-10855 George Thu, 23 Aug 2007 11:41:19 +0000 http://www.milliondollarjourney.com/conrad-black-lessons-%e2%80%93-is-%e2%80%9cmanagement-integrity%e2%80%9d-an-oxymoron-part-2.htm#comment-10855 "Long term, exceptional corporate managers and fund managers operating with integrity are out there. It is well worth our time to search for them and do research on them - and then invest with them for the long term." I disagree. Sure, the next Microsoft or the next Buffett are "out there", but it's extremely difficult to identify those people and companies who will provide consistent above-average returns for the next decade or so. Sure, you might identify them, but the odds are stacked against you. You are much more likely to succumb to the investment error of "chasing the next big thing". It's better for most individual investors to put their money in index funds, keep their fees to a minimum, and ride the market for an extended period of time. “Long term, exceptional corporate managers and fund managers operating with integrity are out there. It is well worth our time to search for them and do research on them – and then invest with them for the long term.”

I disagree. Sure, the next Microsoft or the next Buffett are “out there”, but it’s extremely difficult to identify those people and companies who will provide consistent above-average returns for the next decade or so. Sure, you might identify them, but the odds are stacked against you. You are much more likely to succumb to the investment error of “chasing the next big thing”.

It’s better for most individual investors to put their money in index funds, keep their fees to a minimum, and ride the market for an extended period of time.

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