How to Think Like Benjamin Graham and Invest Like Warren Buffett

202 InManagersWeTrust argument would relate these different sorts of companies to their respective average sizes. Smaller compan ...

RulesandTrust 203 the 1930s, this rule was used to enhance shareholder rights in areas such as cumulative voting and disseminati ...

204 InManagersWeTrust proxy contests in the late 1960s and early 1970s, Graham said that “boards of directors have probably beco ...

205 Chapter13. Directors at Work A n increasingly common lament sung across corporate America is that directors are overworked. ...

206 InManagersWeTrust the wor kforce by about 9%, or 4200 jobs, and closing ten factories.^1 AMP’s board ultimately may have ser ...

DirectorsatWork 207 the successor. There is little reason to believe that even the most outstanding CEO is as good as a top boar ...

208 InManagersWeTrust If the early Ben & Jerry’s policy showed bad judgment, some of the pay packages seen lately show somet ...

DirectorsatWork 209 mendous, a bit like the apocryphal story of Lady Astor’s famous quip on the Titanic: “I asked for ice, but t ...

210 InManagersWeTrust stoc kprice rises above the exercise price, the optionees will exercise the option and share in the increa ...

DirectorsatWork 211 about 5% of annual earnings among S&P 500 companies and in some cases amounting to half of reported earn ...

212 InManagersWeTrust Some managers whom I admire enormously—and whose oper- ating records are far better than mine—disagree wit ...

DirectorsatWork 213 Cascades of stupid acquisitions come pouring in, often drowning the board’s better judgment. These timing pr ...

214 InManagersWeTrust Contrast Mattel’s story with the policies of Disney. Disney’s philosophy is to make only acquisitions that ...

DirectorsatWork 215 will resist the efforts of the acquiring firm whether or not their re- sistance best serves the corporation. ...

216 InManagersWeTrust signaling confidence and giving the appearance of reliability, are ei- ther strange or disingenuous. We sh ...

DirectorsatWork 217 the smartest way to allocate the company’s capital. Indeed, options create incentives to borrow money for st ...

218 InManagersWeTrust constrain managerial discretion somewhat. For these mechanisms to be effective, however, the board of dire ...

DirectorsatWork 219 gage in huge numbers of financial transactions during the course of the typical financial period, usually on ...

220 InManagersWeTrust require. That is a crucial step (though by no means a sufficient one) in giving assurance that, in the wor ...

221 Chapter14. The Fireside CEO T he legendary investor Phil Fisher described his scuttlebutt ap- proach to investing as requiri ...