Insider insights? is there irreplaceable value in meeting with management before investing?

Warren Buffett has frequently mentioned that he seldom meets with a company’s management team prior to investing in their stock. He believes that management presentations are often biased towards showcasing the company’s strengths. Instead, Buffett relies on his own comprehensive analysis of the industry and the company’s standing within it. By thoroughly examining financial reports, he independently evaluates the company’s prospects for success.

I am in the process of writing a report on Yamami (2820), a Hiroshima-based tofu manufacturer. My research has been conducted without a direct meeting with the management team; however, I had the opportunity to watch a presentation by the chairman, Kiyoshi Yamana. He stands in stark contrast to the typical young

tech startup founders of today.  With his endearing Hiroshima accent, he shares the company’s history, enhancing his reputation as a trustworthy businessman.

I couldn’t help but laugh during his recount of launching an automated tofu factory in 2000. His bankers nearly rejected his idea, labeling it reckless, as no one had ever constructed a large-scale automation facility in the traditional tofu sector. They questioned him, “Do you have the sales and profits to justify such significant capital expenditure?” Despite their skepticism, he pursued his ambitious vision, and two decades later, he has proven his foresight.

The video on Yamami’s chairman sparked my interest, leading me to delve deeper into the company’s financial history and write a report. In today’s world, there’s an abundance of information available about companies, and I tend to agree with Mr. Buffett’s view that meeting with a company’s management may not always be necessary before purchasing its stock.

However, there are exceptions. Particularly in Japan, smaller companies located outside of major hubs like Tokyo may not disclose enough information publicly to give investors a clear picture of their growth strategies. In such instances, the only option might be to visit the company and meet with its management in person.

I invite you to share your opinions in the comment section. Is a meeting with management essential to understand a company better?