Saturday, March 7, 2015

Frank Martin quote

From the interview included in yesterday's links:
The first thing I look at in a company is the proxy, the required tell-it-all document on what management thinks about incentives and other matters they typically don't discuss elsewhere. The first thing I do is look at the management—seeing if its behavior is consistent with what it says in the proxy. The idea that stock options align interests is borderline insanity. Charlie and Warren would think the same way in the more egregious cases. 
If a business has a record of improprieties or dishonesty or issues of borderline integrity, we'll pass always. Life is too short to spend time with people that you can't like, admire, and respect.