I have recently set sail on a new adventure with my brother. We have decided to combine our efforts on a single site:
http://www.getrichbrothers.com
This is an exciting time for us as we put this website together as we are certain we can provide a better experience and greater value for our readers working together rather than separately. Please join us and get involved with us!
Your truly,
The Dividend Titan and one half of the Get Rich Brothers
My goal is to steadily increase my monthly cash flow through investing in solid, sustainable, dividend-paying companies.
Monday, August 18, 2014
Monday, May 12, 2014
Top Three Excuses For Poor Performance
In the stock investing world,
companies are required to report their earnings quarterly and management is
required to assess their performance over that period while typically also
projecting what they expect going forward. From reading countless annual
reports, I have compiled a Top Three list for what I find to be the most
inexcusable excuses that management teams employ to absolve themselves of
responsibility for underperformance.
1) “Weather Related”
Can anyone remember a time when
weather wasn’t impacting the way we
live our lives? Every Winter I can remember has had snowstorms and every Summer
has had heat waves. These are not
valid reasons for missing targets. They are events that can and in many cases should
be expected and planned for.
2) “Challenging Macro
Environment”
This one is just broad enough to
encompass nearly anything and everything conceivable that might happen in the
course of doing business. No one is expecting management to be able to predict
everything that is going to happen across the globe, but this excuse is akin to
saying, “We’re not really sure what was going on and once we did the accounting
we realized we were behind.”
Really, this excuse is so vague
that it is unclear how management goes about remedying it going forward. The
macro environment is always going to
be challenging and uncertain.
3) “Margins Squeezed Due To
Seasonal Deals”
Every year has basically the same
seasons and holidays. A management team that cannot anticipate it will be
discounting items through December or any other month to generate sales is
frighteningly short-sighted. I would rather not trust them with my investment
dollars.
If the companies you’re invested
in are using any (or worse, all) of
these excuses, it may be a sign to consider other venues. As an investor, you
should be aware of who is managing the companies you hold stock in. If
management is responsible for the good times, they should be able to also point
inward when times get tough.
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