Buffet’s Tenets (Cont.)
Buffet’s Management Tenets:
5. Is management rational? Does the management use excess cash to “buy back” stock and issue dividends, or expand company into low return investments. Does management express that they are committed to the best interests of the shareholder’s total return on investment.
6. Is management candid with its shareholders? Does management do things the way that everyone else does or do they think and look at their environment before doing things?
Business schools reward complex behavior more than simple behavior; but simple behavior is more effective. -- Warren Buffett