Looking Management in the Eye

14 September 2007

Why do so many institutional investors want to meet with the management of companies face-to-face?  In today’s world of social media, digital communications, and advanced telecommunications why does the face-to-face meeting still hold so much importance?

One institutional investor put it to me this way: “An in-person meeting allows me to look a CEO or CFO in the eye while they answer my tough questions.  It allows me to decipher if they are lying, if they are passionate, if they are competent, and if they are crazy.”

Did investors see clinical depression in the whites of John Paterson’s eyes before the fall of Southwestern Resources?  Who knows?

One thing is for certain, face-to-face meetings with management won’t be going away any time soon.

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