Individual Integrity

Profit reported is a representation by the management that they believe hand on heart that this is what the company will achieve for the benefit for the shareholders collectively. However, too often, that these reprentation has been followed with series of adjustments or later on provisions to the profit that they represented and was rewarded for.

Too some extent, this is the result of dilution of individual integrity in company management. Such integrity cannot be substituted by government regulation, what Obama is propogating or corporate governance.

Integrity needs to be the first and upmost criteria when it comes to management selection. When company you invest in changes management or MD, please make sure to ask the question, " Mr MD, have you been honest in all your dealings so far?"