For me, the lessons are first to identify great management, and second identify a good clean balance sheet. The quality and credibility of the management team are paramount, as even a good business can be ruined by bad management. The other lesson is leverage. A geared balance sheet can be good when things are going well, but when things are going badly, it really limits a company’s flexibility and their options. They’re the two key lessons. If you forget them … the market has a way of teaching you that you shouldn’t. For Perpetual’s new eBook, Decimal to Digital we’ve interviewed fund managers past and present for their keys to investing success. Register to receive your free copy. (VIEW LINK)
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