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Reader says...
What is your view with QAF now and what do you think about their management?
Heard some negative comments on their current management, especially about their CEO background.
AK says...
QAF is related to the Salim group in Indonesia. They have a tight grip on the business. Some don't like this kind of family controlled businesses.
I try to stay objective.
QAF did pretty well until the downturn in the pork business in Australia and that is a cyclical commodity business which means things should look up again eventually.
QAF does have a strong balance sheet and should be able to weather the downturn.
Having such a large majority stake in the business, it is in the interest of the insiders to make sure the business does well and continue to be the major beneficiary of a steady and meaningful dividend payout.
Many years ago, some people also told me horror stories about Old Chang Kee's CEO but it has turned out to be one of my best investments.
Most people are attracted to gossip and that is why tabloids do well.
We should only have to concern ourselves with whether the business is able to deliver what we expect from our investment.
Everything else is just a distraction.
Related post:
QAF's earnings downs but...
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