When Pera said in answer to that question that he hadn’t looked at the price of the stock in weeks, doesn’t that bother you at all? Not at all? I bet he knew the score of every Grizzlie basketball game during those weeks!.. And maybe even how many points each of his players had scored.
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Saul,
How does knowing the price of the stock make him a better CEO? I think he explained it very well when he said that you can’t look at the business on a quarter by quarter basis but that you must judge it on 3 year increments. This guy has a longer view then the price fluctuations of a stock day by day.
Okay,
When I wrote that I wasn’t saying that Pera wasn’t a smart guy.
I wasn’t saying that he didn’t have a great long-term vision for the company.
I wasn’t saying that he was insider selling.
I wasn’t saying that he was taking too much salary.
So what was I saying?
I was saying that Pera seemed that he was so over-confident that he was putting the company on autopilot to run itself. It wasn’t only the question about the stock price he couldn’t answer. There were a bunch of questions about foreign markets that he couldn’t answer. He simply didn’t have a clue. He’s supposed to be CEO for God’s sake! And saying “I’m thinking in three year increments” is just an excuse for not knowing, it’s not a good reason.
He’s obviously brilliant, and the conference call may have been a wake-up call for him, that he better get back to running his company and stop putting all his energy into playing games with his basketball team. He’s obviously bright enough to refocus. The question is: Does he have the temperament? I’m just saying that I’m not sure he is. He’s more like a bright teenager with a toy that he liked a lot for a while, but now he’s put it aside most of the time because he has a brighter new toy.
Believe me, I know I may be wrong, but I don’t like investing my money under these circumstances.
Saul
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