Lucian Miers says that he does not like to meet companies. He is all too aware that part of the job of a CEO is to butter up potential investors, or to persuade bears not to go short. CEO’s are paid large sums to be charming and persuasive and Lucian is concerned that they will manage to schmooze him into making a bad call. I take a different view.
Maybe Lucian is cleverer than I am but I am invariably unable to figure out exactly how a company works, what drives its growth, determines its cash collection, etc. unless I meet the company. The annual report and all the RNS statement in the world are not, on their own, enough to give me a full understanding of how a company runs.
And then there is the x factor – management.
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