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[sharechat] LEARNING TO INVEST: Barriers to sound investment ( 1 )

From: "G Stolwyk" <>
Date: Sat, 14 Apr 2001 18:11:22 +1200

I want to open a can of worms and discuss the factors which inhibit sound investment!
H: I presume, you are on the warpath again, so let's have it!
G: Sofar, we have discussed the Government, " Investor profiles ", Directors, Analysts, Brokers, Advisors, Valuations, the NZSE, Institutions, Newspapers, TV and Teletext.
H: Yes, and the quality of the Intermediaries is not that high, I recall. I must add that Management is very " variable " !
It seems that many Directors and higher management have a hands-off approach ! 
G: That is because many don't know their job or will only act after the event! Some have an off-the-cuff approach while others always think that a piece of number 8 wire will do the trick!
H: You could say that many don't, can't - or don't want to see the big picture and even a degree from an American university, is no guarantee that a company is " safe ". A precious commodity - judgement - is lacking.
G : The latest example is AIR or Air NZ ; you discussed it in one of your posts?
H: Yes, the reader can refer to " AIRVA " of Feb. 21, 2001. It makes a prediction as to an outcome.
I feel sorry for people who invested in this company. It does show that over the longer term, we don't have the people to run these large entreprises.
That is why we leave it to foreigners to buy and run large companies!
G:It seems to take several generations to graduate from running a farm to running a large company !  
We still have some astute people in the Dairy industry and they have a good understanding of planning, marketing and research; to be successful, you would need perception and tenacity in this cut-throat industry!
H: One needs to tip-toe through the minefields of international protection, be nimble and see the opportunities well ahead of the competitors, I think!
G: Turning to Education, this is the basis to support the enterprise and wealth needed. What is your opinion?
H: You know that it does'nt. This discipline will supply jobs to staff who won't have the necessary qualifications, given time.
The system believes in dumbing down !
That would suit certain activists who are looking for jobs for their families: Less skill but high pay!.  
G: I don't understand why governments don't accept successful systems used by other countries.
I suppose that a commission of enquiry and the resulting rehashing of an existing system gives work to certain people!
H: It is all so mediocre, is'nt it? The problem is that mediocrity pervades many layers of society!
That element was always there:" She'll be right Jack "; we did get away with it for a long time! 
( To be continued )

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