Contrary to popular belief, management meetings might be a complete waste of time for fund managers.
A research report released in September by Dresdner Kleinwort Wasserstein’s global equity strategist, James Montier, argues that there are basic psychological reasons why meeting company management might be a pointless exercise.
First, argues Montier, much of the information gathered from meetings with management is “noise”.
Most of the information that managers provide is of low quality, as managers tend to be over-optimistic and over-confident.
Company management meetings can also be unhelpful because investors, like everybody else, suffer from a confirmatory bias.
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