How to pick stocks when the CEO is a sociopath

Company chief executives are susceptible to corruption and often display sociopathic traits

David Brenchley 21 February, 2019 | 6:00PM

In order to stand out from what is a very large crowd, fund managers will tell investors their process is unique, or differentiated from their many peers. Often, though, that differentiation will be nuanced, or negligible. Many times, it still leads them toward the same stocks.

One investor who looks at companies through a rather distinct lens is Jeremy Lang, founder of Ardevora Asset Management. His process starts with a distrust of management.

He subscribes to the thinking of 19th century historian Lord Acton, who once said: “Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amazon.com Inc2,111.09 USD-1.95
Facebook Inc A210.63 USD-1.84
Workday Inc Class A186.08 USD-2.35

About Author

David Brenchley

David Brenchley