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OK besides looking for low debt in cash rich businesses the next thing you'll want to consider is the

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quality of a company's management.

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In most cases a company is only as successful as the people running it.

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And a big part of value investing is making sure that the business you buy into has a reliable experienced

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and forward thinking management style behind it.

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One of the key factors in determining whether or not a business is on top of its game is to have a look

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at what gives it its competitive edge in the marketplace and whether or not its management team has

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an ongoing plan in place for making the most of this competitive advantage.

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This means that management is not only acknowledging the competitive challenges that constantly threaten

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their company but is adapting and responding to those challenges in a realistic and timely manner to

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determine how well a company's management is doing in operating and expanding their business.

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You can use some efficiency ratios.

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And another great way to evaluate the quality of the management is looking at their companies competitive

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advantages.

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You need to make sure to the best of your ability that the people you are trusting your money with have

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proven themselves as effective decision makers and leaders within their industry will dive deeper into

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how to identify companies competitive advantages in the next module.

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You know great companies should have great management teams a great management team should focus on

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generating growth over time which is the best way to reward long term shareholders like yourself.

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So make sure you keep in mind Principle Number four only look for companies that have both strong management

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and a sustained competitive advantages and see you in the next video.