the deal wrote:Can KQ mantain their profitability?
@
Deal.. Something I read last year and learnt to apply in my investing
"..He hurried over to Boston to interview Mr. Reinhart and ask him a few questions. The questions consisted of repeating the accusations he had heard and then asking the president of the Atchison, Topeka & Santa Fe Railroad if they were true.
Mr. Reinhart not only denied the allegations emphatically but said even more: He proceeded to prove by figures that the allegators were malicious liars. The Pennsylvania Dutchman had
asked for exact information and the president gave it to him, showing him what the company was doing and how it stood financially, to a cent.
The Pennsylvania Dutchman thanked President Reinhart, returned to New York and promptly sold all his Atchison holdings. A week or so later he used his idle funds to buy a big lot of Delaware, Lackawanna & Western.
Years afterward we were talking of lucky swaps and he cited his own case. He explained what prompted him to make it.
"You see," he said, "I noticed that President Reinhart, when he wrote down figures, took sheets of letter paper from a pigeonhole in his mahogany roll-top desk. It was fine heavy linen paper with beautifully engraved letterheads in two colors. It was not only very expensive but worse -- it was unnecessarily expensive. He would write a few figures on a sheet to show me
exactly what the company was earning on certain divisions or to prove how they were cutting down expenses or reducing operating costs, and then he would crumple up the sheet of the expensive
paper and throw it in the wastebasket. Pretty soon he would want to impress me with the economies they were introducing and he would reach for a fresh sheet of the beautiful notepaper with the. engraved letterheads in two colors. A few figures and bingo, into the wastebasket! More money wasted without a
thought. It struck me that if the president was that kind of a man he would scarcely be likely to insist upon having or
rewarding economical assistants. I therefore decided to believe the people who had told me the management was extravagant instead of accepting the president's version and I sold what Atchison stock I held..."
Reminiscences of a Stock Operator...Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version