Quality of management
You need to search for answers to some key questions about the managers. This may be achieved by, say, meeting them at annual general meetings, observing them over many years, or by questioning people with some familiarity of the company, e.g. customers, suppliers, competitors, employees.
- Are they efficient at handling day-to-day business tasks? Is there a search for continuous improvement? Do they have the courage to try out new ideas?
- Do they plan well ahead of time to keep ahead of the competition? Do they constantly challenge what is now being done?
- Are managers owner-oriented? Will they willingly sacrifice short-term profits to create high shareholder wealth over the long run?
- Do they love the game and like to excel? ...