Natural tendency for corporate bloating, page-13

Looks like we'll have to end up in courteous disagreement on the Business Quality vs Management Incentivisation debate.

Don't get me wrong: I spend a lot of my time looking for management having interests aligned with my own.

Its just that I spend far more time looking for business model quality and durability.

Because I think that even an idiot like me could run a truly premium-quality business like REH or ARB or DLX without destroying shareholder value, but even the most competent, honest and shareholder value savvyy managers with as much skin in the game as they like in something like a steel producer or an airline or a coal mine will be able to create enduring value for shareholders.

I'm always loath to join the cacophony of would be devotees quoting Buffet, but I think I once read something from him along the lines of, "Buy businesses that are of such a quality that they are able to prosper even if managed by idiots because, chances are that at some stage, they will be."