A colleague of mine once said that he could assess the quality of investment managers within 5 minutes of meeting them. Yes, the usual stuff is important, but not the most important. As Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.” I’ve discovered that every investment manager and organization has certain “tells” that almost unfailingly indicate that trouble lies ahead. Standard investment manager due diligence is incomplete and ignores them.
Below is my semi-offbeat checklist -- if you can think of additional items, please let me know!
Toxic Tells
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