Category: Management Stewardship, It’s All About Human
Simply, Management Stewardship is answering the question of whether management creating or destroying value for shareholders. Good management is the one who creates value in the long run.
Value has to be at least one of these matrices: Rising dividend, Rising capital gain – and should be maintained in the long term.
Management Stewardship is one of the most overlooked aspects of investing. Most Investors merely focus on the economic moat, financial performances, and business prospects.
To tell the truth – no matter how good economic moat, financial performances, and business prospects – it is useless if the management doesn’t give it back to shareholders. Rather than, they create value for themselves. This unfriendly policy could be delivered through too much Stock-Based Compensation.
Another value destruction policy is the careless expensive acquisition, too much reliance on debt, too much dividend paid, or too much salary for the CEO – or a combination of those. Those circumstances, in turn, could erode the competitive advantages of a company, thus, trim the earning.
Unfortunately, most investing resources don’t cover this issue. Try to find it out on Reddit, Quora, Youtube, or even Morningstar and SeekingAlpha, you will be surprised how few sources that talking about management.
Investingdeck try to be there. Our post will deal with how much SBC earned for management and employee, do its harmful? Is it too much? What about the salary, dividend, how healthy is the balance sheet.
Investingdeck also will track the acquisition policy. How efficient it is, do the acquisition reinforce value for the company and shareholder?
Unlike other EV makers, Rivian has a durable competitive advantage with Amazon on its side. But we don’t know how much this edge contributes to Rivian’s revenue.
We are still curious about how Rivian will transform in the future. Will it be Amazon’s arm for delivery or become an EV maker that specializes in SUVs?
Conservative management, we like it. Low debt, and a high amount of cash – may be due to part of the Amazon deal and other investments. Unlike the other start-up.
Our takeaways for Disney Stock Analysis 2022, begin with the pros:
Sticky customer, kids watch Disney again and again. Come to its park every holiday.
Theme Park shows significant improvement. We believe this year it will achieve its pre-COVID performance. Another good news is Disney keeps enhancing its places. Elaborate later.
Though till now Disney+ still burning cash to run its business, the ad-supported content will be the game changer (unlike Netflix). Disney’s content is specific, family-friendly, and targeted. It is good for a third party to access Disney viewers. We will elaborate on this later.
Disney stock price is at COVID level (July 2022)
Cons:
Disney runs an expensive business that needs a high amount of capital. Theme Park requires massive investment, even their digital content needs regular reinforcement like the Fox acquisition in 2017. Unfortunately, Disney’s balance sheet isn’t as spectacular as its magical story to handle all of that needs easily.
Management fails our expectations. Under though situation – the COVID – they prioritize themselves and leave shareholders.
Lack of tailwind. The key driver for growth is increasing Disneyland ticket or subscriber fees. Reaching more people is more difficult. Disney is simply not a fast grower company.
Ok, now going to the elaboration section. You can skip this post if you don’t want to go into further detail.
Oh, don’t worry – we keep this post updated regularly.
Every year, via Berkshire Hathaway’s annual letter to shareholders, Warren Buffett shows us his portfolio. Moreover, so many great investors also tell about his approach – whether it is blogs, YouTube channels, or apps. Can we just copy-paste investing strategy of Warren Buffett?
In 2019, Novartis – in its search to become a gene and cell titan, built a manufacturing facility through a 90 Billion CAPEX, setting the bar high for the entire pharma industry. It is the reason why CAPEX analysis is crucial.
When Growth is fading, companies need to seek another opportunity
In this article, we explain how smart acquisition ignites another long waited innovation by Apple. Also, it shapes a new landscape for the whole chip industry. Continuing topics about GCG in Acquisition, we bring you another prestigious name: GE. But this case is the opposite of Apple.
Largest Acquisition by Big Fives (in millions USD)
Just a year after the launching of the first-generation iPhone, Apple has set its way to developing homegrown chips. Our article about the acquisition strategy of Apple will cover this management policy from the investor’s point of view.
In 2021, in the journey of its presence in the streaming business, Amazon snaps up James Bond Maker, Metro-Goldwyn-Mayer. In 2017, General Electric acquires Baker Hughes, the oil company, completing its acquisition in almost every industry possible. We know how it ends. In this article, we try to provide insight into the Management Analysis of Amazon. How good is its acquisition? How does it differ from GE? What similarities?
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