The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Investor relations: A complete waste of time

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. The questions that fund managers ask tend to be leading rather than probing and the answers they receive tend to be designed to please.

DrKW's Montier also highlights our established psychological tendency to obey authority figures. Analysts and fund managers have a tendency to get overawed by CEOs of large successful companies.

"Given the large number of psychological hurdles and the difficulties entailed in overcoming most of them, it would seem improbable that company meetings really add the value that so many investors seem to think they do," says Montier.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree