May 23, 2015 – Businesses are Man-Made. Management Matters

It’s funny to me when people react too negatively on earnings results considering businesses are man-made.  Businesses will inevitably go through rough patches because men are fallible.

I believe though that some problems are easily fixed.

Every business is man made.  It reflects the business philosophies of the founders and employees running it.  If you want to have an understanding of any business, it is important to know the backgrounds of people who started, directed its past and hopes and ambitions of those planning for its future.

Buy stocks of these growing businesses managed by these people who have the vision and inclination to prepare that future through intelligent research and development.


Note that free cashflow is an important metric or clue to see whether the management can indeed generate cash flow.  Don’t look at income as some may be non-recurring and includes a huge receivable.

-Faceless Trader


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