not quite28 Feb 2015 13:26
if more PIs reflect on the extreme risks they take by casually punting, the better for their wealth...they are gambling in a casino where others win (like the casino operator does in the analogy)
...AIM companies are run by managers who (to put it mildly) the evidence suggests do not systematically create shareholder value
...look at AIM/USM's 20 year history: value destroyed over the medium/long term (plus or minus a few relief rallies, and in one or two exceptionally well run companies like DWHA/T)
...only when managers are properly accountable (as they are within a PE framework) are their interests and effort properly aligned with shareholder value creation
...SPGH's last few years have been a graphic slow motion car crash of shareholder value destruction...while managers and workers livelihoods have been protected...
....the shareholders have lost spectacularly, while other stakeholders have been fine...is that right???? It feels more Moscow c1950 lol
...This is an important case study of why investing AIM is not for most who do