Imagine a fun day out with your friends enjoying a great brunch including some champagne, good food, and all that for free. Not one penny that you need to part with; thanks to, let's call it, the social side of capitalism. If you think it sounds fantastic, so do the young and the elderly.
Some time ago, I went to a shareholder meeting to get a feel for the management’s commitment to their proposed strategies. The company was nearing a major overhaul and, although the information was available in their annual reports, I wanted to experience the management and their reactions to being challenged first hand. In my experience it is a good idea to see the heads of the company live to determine the success of an organization's direction and its future.
The social Gordon Gekkos
On my arrival at the convention center, I spotted a queue of around 20 people seeking entry to the epic center of capitalism; all investors in the company. If you are picturing 20 ruthless investors like the infamous Gordon Gekko from the film Wall Street, well … these were different.
These waiting investors had a different agenda. Even their attire was worlds from Gordon Gekko's tailored suits. Their preference was khakis and sweaters.
Sounds more Silicon Valley than Wall Street. But those waiting in line were no more Silicon Valley geniuses than ruthless Gordon Gekkos. They were more senior: elderly ladies and gentlemen. I found myself amidst not high-powered financiers, bankers and hedge fund managers, but a group of pensioners. I was puzzled; but then, given their age, they were probably big shareholders in the company.
A few minutes had passed before we reached the entrance. Security at the door asked each shareholder to show their share certificate to prove that they were indeed shareholders of the company and not random passersby who stopped to fill their bellies with sandwiches and free champagne. As I stood behind three elderly people, I spotted their certificates indicating their incredibly large stakes in the company; one of the ladies held a full 5 shares, her husband another 12 shares, and their high rolling friend a full 17 shares. With a share price of around €35, their combined investment in the luxury car manufacturer was € 1190; hardly enough to really influence any decision, but that was not what they came for.
Free brunch with friends
The reason for their early morning commute was a much more fun and social one. They were not rich, elderly shareholders, as I had initially expected, but pensioners on a day out. Their combined investment wouldn't even have bought them a stereo system from the car manufacturer’s price list. But they seemed little fussed, as they had come for a more social reason: brunch with good friends. You've got to give them credit for their wit: with their small investment in a solid company, they enjoyed some morning entertainment, good food, and a couple of glasses of sparkling wine. And all in the company of good friends. A cheap day out indeed.
Gekko claims in Wall Street that greed is good. The elderly trio reinterpreted his statement applying it to the variety of foods and drinks on offer. Their “greed” was limited to a free brunch. It was only a short distance between the entrance and the buffet and this elderly gang knew their way. As I was passing the food stands to continue to the auditorium, the three headed for some sausages and sparkling wine.
After listening to management for about 1 ½ hours, I made my way past the buffet back to the exit. As I passed some of the tables, I spotted the trio at a table joyful and content. That morning they were surely reaping the rewards of their investment. Kudos to them: their decision was financially savvy and rather lovely; starting a nice spring morning with a delicious free brunch with good friends.
Being a shareholder is so much fun: it allows for a social day out with your friends and a chance to enjoy some food and drink. If you happen to pass an Annual Meeting on your own, just drop in. It's much cheaper than Starbucks for breakfast; just buy a couple of shares, head to the AGM and fill your belly with some tasty food, coffees, sodas, and even a glass of champagne. Even if the share price falls that day, don’t worry. At least you won't go home hungry.
