How to Evaluate Company Management for Buying Stock? , business – Times of India Videos

July 16, 2022, 09:00 AM ISTSource: ET Online

While most investors focus on a company’s PE ratio, its earnings growth, return on equity, etc., very few pay enough attention to the quality of people running that business. The presence of a good management team will separate a good business from a great business. So the big question before us is how do we identify companies that, along with managers, do a remarkable job of consistently delivering value to their shareholders and putting the interests of their shareholders above their own. The 4C framework is nothing but 4 essential characteristics by which we evaluate management. The first C stands for able or ability, the second C is commitment, the third C is candor or forthright and the fourth C is compassion in our framework. Source: ET Money, Download App Here,