Management Quality

 Having a little experience in investing journey I find out that one of the most important factors to find our stocks is the quality of management. this topic always raises the contentious issue of whether retail investors have the opportunity to talk to management and understand insider information. I consider what we have control over.let me share some insights which I had figured out in the last some years that how to find efficient management. 

                      First of all, I look for consistency which is the most important part of your business. look at things which management had done in their down period. having consistency over ten or more year in their cash generation and operation margins make their acumen to business. If consistency is not there look at what management had told in their investor presentation or AGM. After some period of time, all CEO & management become a salesman. they just want to sell their company to investors. be aware of these things. here, you can check the integrity of management and wether they are bluffing about their consistency or not.

                    The second factor which I look at in efficient management is how they manage their working capital and inventory. how they can manage this two things which you can understand.

                    Third factor is capital allocation which management does for their investors. whatever cash they had generate over the year period how they manage thier cash. Is are they paying more for their acquiring new companies. Is they are giving dividend to investors before paying debt in their company.