In this report we will be showing how much does management own for ticker: MA company
The core idea is to understand management's vested interest in the company
If managements fortunes depends on the long term prospects of the company, management will never take shortcuts nor it will be engaged in any wrongdoings
Studies show companies with substantial management ownership have outperformed SPY, e.g.: https://www.jstor.org/stable/43611178
Jeff Bezos - Amazon, Warren Buffet - Berkshire are classic examples of owner and companies...
King Hammurabi of Babylon already used the principle when he established one of history’s first laws. To ensure high construction quality inside the empire, one set of laws was for the builders.
Law 229 stated that if a builder builds a house for a client and does not construct it properly, and the house which he built collapses and causes the death of the owner, that the builder shall be put to death.
As a result, builders who were not able to construct properly or tried to cheat left the trade —one way or another. Soon, those who were planning to build a house had less to worry about.
The law’s harsh consequences and its simplicity made sure that the incentive of the builder who gains to profit and the man who risks the cost of construction, living inside the house, are aligned.
“Show me the incentive, and I'll show you the outcome.”
― Charlie Munger
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Work in Progress, we are still trying to see how best we should show this information to you!
In the meantime, Management Ownership is available in Proxy Reports for a company : Proxy Report for MA
Look for Beneficial ownership, it's the last table in the Proxy Report
Please visit this page later, we are working on getting the data, we appreciate you showing interest in this report...
Things to look for in Proxy Reports!
We feel, it's the first report one should reach before buying a stock in a company
Director's compensation wrt peer companies
CEO pay and incentives
How is company rewarding management and on what metrics
What was the target metric growth rate and what was achieved
the most important thing: Management Beneficial Ownership