As an alternative tool to investigate a company’s prospect, besides B/S (Balance Sheet) and P/L (Profit/Loss Statement), Peter Lynch told us to sniff around its management culture. Solid and visionary management is an early sign of good stock performance, otherwise it indicates early sign of decline and you should abandon its stock. Remember Enron, even a giant global energy company could go bankrupt.
These are some early warning signs of poor company you must avoid:
Excess personnel and excess department
Tolerance of incompetence, there is no punishment for doing wrong or reward for doing perfect
Cumbersome bureaucratic procedures, the management prefer procedures to results
Scarcity of clear goals and decision making
Outdated organizational structure
Lack of leadership, the company has as many managers as possible, but there is no leader.
Resistance to change or slow response to change
Low morale
Decreased innovation, the company introduces only few new products to market for every couple years
Lack of strategic actions, the company appreciates routine jobs more than strategic ones. Even this could be worst: there are no personnel or manager who thinks strategically.
The managers playing golf more often than reading great management books
Carl Icahn, a famous corporate raider and ranked 53 world most richest people in 2006, used to buy major stakes of such company. He took over its dumb management, fired them all, restructured the company, and then sold it with higher price. If you have enough money to do so, I will tell you a perfect company to buy.
Anda mestinya gembira. Ternyata BEI tak mau kalah dengan department-department Store mengadakan great sale menjelang lebaran. Inilah saatnya membeli saham perusahaan sekelas Ferrari dengan harga Hyundai. Berikut ini criteria screening praktis yg saya ambil dari buku “The Little Book that Beats the Market” oleh Joel Greenblatt.
Puluhan riset menunjukkan bahwa hanya sedikit investor yg sanggup mengalahkan return market dalam jangka panjang. Ini disebabkan utk menjadi 20% itu diperlukan bukan hanya skill (fundamental analysis) yang mantap, namun juga factor mental psikologis yang matang.
When you finish reading this article, you may find the reason why U.S invaded Iraq, why U.S President hate Iran and Venezuela, and why the oil price continue to soar. You may change the way you invest.
Mental accounting adalah perilaku ekonomi dengan mana seseorang menggolongkan inputan dan keluaran berdasarkan pos-pos seperti halnya model akuntansi (account code). Karena pengaruh mental accounting inilah maka uang Rp 1 juta yg diperoleh dari undian berhadiah dan uang Rp 1 juta yg diperoleh dari kerja keras 1 bulan, tidaklah sama nilainya. Padahal jumlahnya sama.
Inilah “The League of Legends”, liga yg dihuni oleh sangat sedikit stockpicker yg dalam kurun panjang secara konsisten mengalahkan indeks market (long-term performers). Tujuh yg terbaik dan yg paling popular (The Magnificent Seven) adalah Benjamin Graham, Warren Buffet, John Templeton, Peter Lynch, John Neff, David Dreman, dan T.Rowe Price, Jr.
(c) pratolo.com 2005
Greed adalah satu dari dua dosa tertua. Dosa pertama adalah sombong yang mendorong Iblis untuk membangkang pada Tuhan: menolak bersujud pada Adam. (Setelah Adam turun ke bumi, dosa pertama ini lalu beranak-pinak. Salah satu dosa derivatif dari sombong adalah rasial, yang hingga kini telah memakan korban ratusan juta manusia akibat rasialisme dan genocide). […]
