Culture and values of a company and the investor

[Werner_1]

I would like to know who of you pay attention to the culture and values of a company when you invest in that particular firm? are you only after the price movement or do you actually care about what they're doing and how they're doing it?

[Werner_1]

Ok, so i take it nobody here cares about the culture of the organisations they invest in? what if the way a company does business sets itself up for greatness in the future, cultivates innovation and creativity, etc?

[am_1]

I do. Take EOH for example against ABL

[Werner_1]

yes, another great example is Capitec vs Abil! both banks, one great the other proven to be not so great...

[geordie1]

I like a company that has integrity.I check what management say and whether they speak the truth even bad news and whether what they promise actually takes place.I also want to beleive that what they are doing is sustainable in the long term

[Rams]

i dont like alcohol, but i like SAB....

[Werner_1]

I guess you don't smoke but like BATsa?

[Rams]

and the list goes on, same with banks, Telkom, no Eskom yet....

[Werner_1]

but that isnt really the culture and values ideas that i am thinking about... my thinking is more about the alignment from within the company and how its operating and not if the investor agrees with the product they're selling.

[#10]

hard for a retail investor to measure organizational culture. That requires case study analysis usually carried out by academics or paid for consultants. All you have to go on as an investor, is how accurate the management team are in forecasting their returns and how well they protect your investment, which is not the same thing at all.

[Werner_1]

Skaap... that's 100% true... its a pity the investment community doesn't have that info, I think it would be very useful to everyone.

[Rams]

but we do have that information, share price, ROE . Is it all not reflected in the price?

[Werner_1]

Its not all about the numbers...

[Rams]

are you referring to collusion like the practice of construction companies and cellphone companies. Or companies that just take out the competition? Or the CEO or CFA "borrowing" company funds.

[Werner_1]

At a visible level, culture represents the behaviour patterns or style of an organisation that new employees are automatically encouraged to follow by their fellow employees - the companies with strong cultures tend to do better over time.

[Werner_1]

ok, strong good cultures, you can have a strong bad culture too and have your smart workforce walk in tandem off a cliff...

[Galuc]

I don't even look at what they sell or do unless I am really bored stiff, buy on charts, fundamentals are to complicated for my small brain!