Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TMFScrap Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 93  
Subject: Re: Dillard's Daunting Dilemma Date: 5/29/2005 1:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0

However, even at a company without the control issues of Dillard's before taking a position an investor should ask themselves if they trust management. This is even more crucial at Dillard's. If you do trust Dillard's management (family) though then you might be getting a deal.



It's interesting that you raise the question above of trusting management. I didn't elaborate on it initially, but the existence of a dual-class structure where one group gets 10x voting rights and therefore control of management, the board, and by extension compesation tells me trusting management means I'm taking on extra risk. Very large amounts of risk.

I can understand that historical performance of certain companies may indictate otherwise, but the lack of a gatekeeper keeps me away except for some rare deep-value situations.

There are a couple cases where I've thought long and hard on the past. Claire's and Boston Beer Works. Neither has been deep-value for a while, but thus far they're the only two where over a long peroid of time I've talked myself into taking a small "chance" on a dual-class structure investment.

Best,

Nate Parmelee
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

U.S. Stable, Europe Stalling
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement