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Stocks B / Berkshire Hathaway


Subject:  Re: Stock Picking Getting Harder Date:  11/26/2017  8:23 PM
Author:  TransverseSlice Number:  232877 of 247680

I don't have the confidence to commit large percentages of my money to businesses that don't have conference calls and no one follows...I feel more comfortable reading tons of opinions on businesses, then making my judgment based on that info. I've find sound reasoning is easier to recognize than produce...though I suspect the latter in qualified hands is more profitable).

I just want to clarify something.

When I say, "pay attention to businesses that don't host
conference calls", it is more along the lines of, "find management teams who don't go through the
usual Wall St motions just because everyone does it". There are probably more companies out there
who don't host conference calls because they don't care a whit for minority shareholders, than
companies who believe in capital stewardship but don't host calls because they think they are a
waste of time and incentivize bad behavior.

If you ask a CEO why they host calls, you don't want to hear, "because that is the Wall St game".
The best response I have ever got to that question was:

"I view it as a chance for employee shareholders to hear the same messages from me that they are
hopefully also hearing from the operating group managers and business unit managers. Easier to keep
the wheel true when you are just adjusting the spokes a bit. Hard when it has gotten far out of
alignment. Same applies to long-term but unsophisticated shareholders."

There are only 3 businesses I currently hold (one is Berkshire) that don't host conference calls. However, some of
the businesses I like most hold very atypical calls.
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