While financial statements provide detailed insights into a company’s prospects, future performance is significantly impacted by the business’s management – regardless of size, structure or industry. The quality of the Chief Executive and senior managers is critical to assessing the overall value of an enterprise and is one of the most important factors informing our investment decisions.
Our investment approach is based on a detailed rating system for measuring a company’s intrinsic value and determining if it is a viable investment proposition. We rate both quantitative aspects of the company, such as forecast Earnings per Share (EPS) growth, and qualitative attributes, such as management.
In an article published in Cuffelinks, I discuss how we measure the value of a company’s management team. To read the full article, click here.