Tag: Management Teams

It Always Makes Sense To Invest In Quality Names

It Always Makes Sense To Invest In Quality Names

Many Technology investors got religion on August 26th as it relates to interest rate increases (more to come) and a Fed pivot (not any time soon). The message of "higher for longer" was reiterated yesterday by Fed Chair Powell. The Fed tends to undershoot when it comes to inflation and its Fed Funds target. We … Continue reading It Always Makes Sense To Invest In Quality Names

VC Culture Ruins Companies

VC Culture Ruins Companies

The grow-at-all-costs venture capital culture of the past 20-plus years ruins companies. How? Far too much focus is placed on revenue growth at the expense of sound operations and profitability. Too many venture-backed companies grow at a pace that far outstrips those companies' ability to scale operations in a manner that supports growth. The result … Continue reading VC Culture Ruins Companies

Management Teams Will Matter More To Investors

Management Teams Will Matter More To Investors

As growth slows and interest rates climb, management teams will command a greater weighting in investors' due diligence processes as compared to the 2009-2022 period of ultra-low interest rates and Quantitative Easing ("QE"). While it is too early to call peak inflation and far too early to talk about a Fed pivot, it is never … Continue reading Management Teams Will Matter More To Investors

Make It Easy For Investors

Make It Easy For Investors

A general piece of advice that we have provided to CEOs and CFOs over the years is to make your company's story easy for investors to understand. One can not overstate the importance of simplicity when communicating a company's story to investors. It is important for management teams to succinctly describe: the market opportunity;the customer … Continue reading Make It Easy For Investors

For Stock Returns, Look Where Others Are Not

For Stock Returns, Look Where Others Are Not

Small cap equities and international equities are generally good places for investors to begin their work of finding undervalued companies. In this age of ultra-low interest rates and overvalued assets it makes sense for public company investors to look for value in areas of the market that receive less investor attention than sectors that garner … Continue reading For Stock Returns, Look Where Others Are Not

Investors Should Ask More of Their Management Teams

Investors Should Ask More of Their Management Teams

One of the great distortions caused by the joint fiscal and monetary policy of 2020 and 2021 is that equities and the lowest-rated non-investment grade credits are two of the all too rare places where investors may earn a return. Savers and Fixed Income investors be damned. Many companies are enjoying their stocks trading at … Continue reading Investors Should Ask More of Their Management Teams