10 Steps for Evaluating Company Management

By considering management's record and looking at the context of its decisions, you'll gain insight into whether a company is a good investment choice

Todd Wenning 15 April, 2014 | 1:26PM

Most investment research focuses on the quality of a business' operations, competitive position, returns on equity, earnings growth and so on—and rightly so—but far less attention is paid to the quality of the people running the business. Both factors matter. Indeed, Warren Buffett frequently speaks about the importance of evaluating the people who run the businesses he owns. 

Here are just a few examples:

"Over time, the skill with which a company's managers allocate capital has an enormous impact on the enterprise's value."

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Todd Wenning

Todd Wenning  is an equities analyst with Morningstar.

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