Gustavo Ballvé on January 5th, 2015
Corporate Strategy, Diversified financials, Food for thought, Home, Portfolio Management, Risk management

A Financial Times story today highlights what is certainly a top-3 item on value investors’ wishlists (up there with “temporary availability of cheap, great companies only I know enough about”): raising permanent capital. The compliance, corporate governance and incentives challenges are immense, but every investor thinks at some point that they could make it work for them and their clients – as the potential benefits of a truly long-term investment horizon could outweigh the risks/ unintended consequences incurred. Even so, the Berkshire Hathaway comparison is as unfair as it is potentially dangerous for less-humble managers and for unprepared companies.

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