By: Don

Don — Mon, 24 Nov 2008 18:03:00 +0000

I actually think that “I don’t know” is a fair sort of statement for an executive to make. I am more troubled by flase statements. But I feel that portfolio managers want concrete values to plug into their investment models. Investors love nice-looking financial reports. If you take any intermediate level of accounting, it should become evident that financial statements can be engineered to say almost anything. I actually think that we need some major rethinking in the area of equity valuations. I also believe that company executives should be doing everything possible to support the company’s interest – short of giving false information. Investors have to take some responsibility. In many cases unfortunately we should let them lose their savings for bad decisions. Alternatively we can regulate companies out of existence.

Comments on: Silence is no defense for Euro tech executives

By: Don