Management Honesty

The good management and the ones that are the most appropriate for extraordinary investments are almost all very honest about answering the questions asked to them about the weak points of the company as well as talking about the strong points. Nonetheless, it does not matter how meticulous one management might be in this aspect, there are not any corporate officers that in their own interests can be expected, not asked, to provide some of the most important issue for you, the investor, to be aware of. You simply cannot expect a vice president to whom you ask if there is anything else you should know about the company to give you an answer to the point where the other top members of the management team are all doing perfectly but because there have been a few years of poor management it has started to bring about weakness as far as sales are concerned. Is it possible that the management will be able to provide more that this might not be too important since they have some young personnel on their staff that has some incredible abilities and that in the next six months the younger personnel will be in charge and will resolve the situation?  Obviously this is something that management would not let you know about; nonetheless something interesting is that when a management is able to see that you are already aware of the marketing problems and weaknesses, it is possible he will provide you with political comments, however with the correct kind of management and if they are able to trust in the judgement you have, you will be provided with a realistic response as far as if anything is or is not being done correctly to work out this type of weakness.

This mean that if you have gotten some information from other sources and have used some scuttlebutt before you actually go up to the management, it will help you be able to find out about what you should try to learn when you visit a company. Not having this will probably not allow you to find out about the most essential points of the company which involves how competent the top management actually is. Remember also that even in some medium sized companies there might be around five men that are in the management team and that it will not be possible for an investor to meet some of them and in such a short amount of time be able to determine their overall ability in the business in just one or two meetings. Remember also that in most cases there will always be one or two that are more able than the rest of the group. By having inside information to help you, depending on who you run into, will help you be able to help you form somewhat of an precise idea of who is specifically stronger and who is a bit weaker and are in a better place to ask to meet the specific officers you might desire to get to know a little better.