Forum Archive Index - October 2000

["Graeme & Jill Christie" <bayvu@ihug.co.nz>]

While there's an interesting debate about Wrightsons going on, any comments
about other cos with an interest in the agr. sector? REI , WKL(discl. hold)
DBN and Tas Ag.  The latter two might be fully priced but all of these cos
pay quite good divs Thanks G.
-----Original Message-----
From: Brian Gale <brigale@i4free.co.nz>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Sunday, 29 October 2000 15:02
Subject: Re: Re: Re: [sharechat] WRI


>
>Thanks for those comments Steve - they follow my own line of thinking.
>
>  I believe NZ companies, by and large, face very difficult economic and
>trading conditions which would test even the most brilliant
>personnel.  After all we surely can't come to the conclusion that the
>majority of NZ executives are dummies, can we ?
>
>  It is a trend to look for a ' fall guy ' like when the All Blacks lose a
>game, other factors, like the skill of the opposition, don't warrant
>consideration - heads must roll. Its the easy way to vent one's
disappointment.
>
>Regards
>Brian
>
>
>At 13:05 29-10-00 +1300, you wrote:
>>Brian wrote: "...I have difficulty in attributing the ' destruction of
>>shareholder wealth'  solely to the remuneration of their executives..."
>>
>>Thats a good comment Brian. The performance of a company must have a lot
>>to do with the type of business it's in, and a better indication of
>>management ability to create shareholder wealth (or minimise loss) is to
>>compare it to its peers within an industry.
>>Depending on that industry a company may be subject to factors beyond its
>>control, effectively limiting the best efforts of management strategy and
>>direction.
>>
>>Buffett says of management: "Economic strength is most often found in
>>franchises. One strength is the potential to freely raise prices and earn
>>high rates on invested capital. Another is the ability to survive economic
>>mishaps and still endure. It is comforting, Buffet says, to be in a
>>business where mistakes can be made and still above average returns can be
>>achieved. "Franchises," he tells us, "can tolerate mismanagement. Inept
>>managers may diminish a franchise's profitability, but they cannot inflict
>>mortal damage."
>>"A franchise can survive inept management; a commodity business cannot".
>>[From "The Warren Buffett way"]
>>
>>If remuneration of executives and management gets out of hand it could be
>>a symptom of a greater problem within the business itself and will likely
>>harm shareholder returns.
>>At the same time these remuneration schemes are designed to make
>>management think more like owners and increase the returns for all
>>stakeholders.
>>Rising costs and corporate excesses are often a symptom of misallocation
>>and mismanagement of capital on a larger scale. Hard to believe that BIL
>>once had a 22 seat Falcon 900 bizjet to buzz around in!
>
>
>---------------------------------------------------------------------------
-
>http://www.sharechat.co.nz/          New Zealand's home for market
investors
>http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join
now.
>---------------------------------------------------------------------------
-
>To remove yourself from this list, please use the form at
>http://www.sharechat.co.nz/forum.shtml.
>


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join now.
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.