Feedback from a Shareholder Meeting part 1/2

Keeping the pressure on and let’s see where this goes!

It’s always good to see management at least once a year. Annual shareholder meetings are a must—especially when the company doesn’t communicate much throughout the year. For instance, there are no public meetings when half-year and full-year results are published.

There’s an ongoing debate about whether shareholder meetings should be recorded and made accessible to everyone, not just those who attend in person. French regulations are evolving to mandate companies to tape and broadcast these meetings.

This change has both pros and cons. On the positive side, everyone would receive the same information, and those unable or unwilling to attend would still gain access. Recorded meetings would also allow for easier evaluation of management, holding them accountable for their promises. However, the downside is that management might become overly cautious, sticking to politically correct, scripted speeches. This could lead to dull exchanges and neutral answers.

In my opinion, attending shareholder meetings should remain a rewarding experience, as it demonstrates serious involvement in one’s investments. There’s also the risk that seeing management in person could compromise objectivity—after all, they excel at delivering polished sales pitches. However, I still believe it’s beneficial to gain insight into management’s approach, especially since our returns heavily depend on their capital allocation skills.

This is a historic holding of mine, and I make it a point to attend their meetings annually. Comparing what was said in previous years to current developments is invaluable for assessing whether management keeps its word.