Motley Fool Money Mailbag Extra: incl. The Case for Catapult
Aug 22, 2021
A lively mailbag tackling ethical investing and whether personal morals should stop you from buying shares. Clear takes on management pay and long-term incentives. Practical debate on hedged versus unhedged ETFs and why owning multiple US ETFs can make sense. Tips on dollar-cost averaging across a whole portfolio and when to sell to spend. A spirited defense of Catapult as an elite-sport data play.
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Design Compensation Around Five Year Performance
- Inspect executive incentives before investing and prefer long-term vesting tied to multi-year performance.
- Andrew Page suggests delayed five-year contingent bonuses and metrics like EPS to align management with shareholder outcomes.
Use Recommendations As Idea Generators Not Blueprints
- Use personal conviction when deciding whether to follow a published buy recommendation and attack the argument to form your own view.
- Andrew Page advises members to borrow ideas but not conviction, weighing customer experience and ethics as part of the decision.
Don't Let One Bad Customer Experience Decide Investments
- Personal consumer experience can mislead investing decisions because your view may not be representative of the customer base.
- Scott Phillips warns to test whether your negative Harvey Norman experience is typical before avoiding the stock.
