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BB&T Corporation Message Board

  • krinkle12 krinkle12 Jun 3, 2005 6:57 PM Flag

    Shareholders Right to Question

    Snippet from a recent Motley Fool article:

    Lesson No. 1: Buying stocks makes you an owner
    My favorite part of The Intelligent Investor comes toward the end, in the section that covers shareholder rights and responsibilities. [Benjamin] Graham exhorts common stockholders to think of themselves as owners who have a right to answers. He writes: "Shareholders are justified in raising questions as to the competence of the management when the results (1) are unsatisfactory in themselves, (2) are poorer than those obtained by other companies that appear similarly situated, and (3) have resulted in an unsatisfactory market price of long duration."

    In other words: If your investment is underperforming, you have every right to demand better.

    Sounds a lot like what Jim writes about.

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    • DM5,
      You're right, I figured his trust fund picked up those shares for him before he was born.

      You're also on the right track with your daughters and more may stick than we think. I've given my 6 grandkids (4 girls 2 boys) shares of BB&T with dividends reinvested to help them develope an interest in the stock pages and it's beginning to take on the 14 and 11 year olds.

      A very wise trust banker wrote a book "How to get rich and stay rich" and says wealth occurs three ways.
      1) Inherit it
      2) Marry it
      3) Spend less than you earn and regularly invest the difference in long term appreciating assets with dividends reinvested.

      A select few may succeed with 1 and/or 2; but 3 will work for anyone with the discipline to practise it.


    • Fan

      If the age (34) on his profile is accurate, that may have been a bit difficult. Even I, at my advanced age, wasn't very interested in investing in '67. I was still living hand to mouth, buying the penny candy as fast as the allowance arrived. lol

      PS: I've tried to impart a bit more investing knowledge on my 3 daughters at an earlier age than what I received. Unfortunately, they and their mother's(tongue firmly planted in cheek) idea of investing appears to be to buy things like Beenie Babies.

    • Looking in the rearview mirror, my hindsight is just as good as yours.
      But what's important is I'm happy with my investments and the lifestyle they support.
      BRKA is only one of many names you could have bought in 1967 in hindsight - hope it was one of yours.


    • You could have bought 1 share of Brka in 1967 for $30.19 which is worth $83,000 today. You bought the wrong stock.

    • DM5 has it right on both counts..Dr. Hackley was not listed in the 1993 BB&T Annual Report, and was a director listed in the 1994 Annual Report as President of the NC Community College system at that time. He obviously came on board as one of the Southern National directors at the merger of equals. He received options from some predecessor bank as part of his director compensation which had a restated basis of 8.52 adjusted for splits, etc.

      As outlined in the proxy, BB&T allows directors to take their compensation in cash or options at market value on day of issue. They may exercise at will within the option term.

      I have personal BB&T predecessor shares bought 38 years ago at $50 which now have a basis between 2 and 3 bucks. I use this illustration only to validate the rewards of buying a good stock as long term investment, which I am a fan of for mutual funds as well.

    • Several years ago I ask "why are we awarding John A ,Kelly King , Scott Reed and the rest of those guys options when the stock had been trading range an was not moving . Just like these last few years. I was told by alot of posters on this board that those options were granted for the years before. Well now why are we awarding them ? They have giving themselves more money than we will ever make here even when the stock does rise.

      BTW, Iam a long time holder of BBT. Bought back in the early 90's.

      I will say it again it is not right awarding them these options for poor performances.Its just not fair to the stockholders.

      • 1 Reply to wahoo8212
      • Also, let me say that options in some cases are OK. Back in the golden days Board of Directors keep the CEO an his management staff in check. Now the CEOs and his management staff keep the BOD in check. After the 70s the CEOs learn how to get those options base on all kinds of ways that they will never be kept from getting thier options. Its just like our politicans tell the average worker about the retirement plan. They tell us what right for us but they have thier own plan . Just for themselves. CEOs are getting to be the same way with stockholders.

        That ol saying "I like a company where the management is in the same bed with the shareholders " was great for the 70s. This is 2005 an those sayings are just bullshit in todays time. Those shares were bought by us the stock holders for them. Very few now use thier own money any more ,except Warren Buffet.

      • 1 Reply to atiinvestor2k
      • Did everyone notice that this link referenced in post 11023 was for an article dated January 14? This was written before the company missed this year's first quarter earnings estimates, which now makes two quarters in a row of missed earnings estimates and is based on at least some information that is almost six months old.

        Isn't this imformation or opinion at least a little on the dated side?

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