30 Days to Becoming a Better Investor - Day 27
Examining conflicts of interest between management and shareholders is critical when choosing companies that are worthy of your investment. Arpit Ranka examines these conflicts of interest. He discusses liquidation, expansion, buybacks, compensation, and the role of directors.
You can often find some information about conflicts of interest in proxy statements, and I recommend that you read the proxy statement of any company that you currently own or are considering purchasing.
Visit the summary page of the 30 Days to Becoming a Better Investor community event, and catch up on the old posts you may have missed.
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Reading the annual reports to look for the signs of company management working to add shareholder value is the best way. Most of the individual investors’ concept of risk differs from institutional investors.
For an institutional investor beating the benchmark is all that is needed. Individual investor can decide to be patient and smart similar to Buffet.