ESG Doesn’t Change This Fact

An investing red flag you can identify in minutes

The ESG movement has focused attention on the “G” – governance. But as I see it, any institution that is newly embracing this should be asking why governance wasn’t integral to their process already.

There are a few simple rules that private investors and fund managers can apply when looking at board composition. These rules will keep you out of trouble and are simple to administer.

Boards should:

Have qualified people

Have people who are aligned with your interests

Not be too big

Have people who are the right age

Have some diversity (but not in the way you might think)

Paying subscribers can read on to see how I apply these rules in my research. In extreme cases, these techniques can quickly rule out a long investment.

I have been having some issues with Dropbox, hitherto totally reliable. My home PC, office PC and laptop got out of synch and the Amazon model for paid subscribers was affected. My apologies. The model is now updated and missing tables are now included. Please download it again to get a complete version.