Findings from multiple CEO/CFO interactions … Ahh … that explains it

Last Wednesday at the Southwest Investors Conference, a CFA related event, I was able to interact with dozens off CEO/CFO’s.

Three Part Advisors Southwest Ideas ConferenceSouthwest Ideas Investor Conference

Getting an invitation to this annual event is always a treat. While the week before Thanksgiving is busy, this event is time well utilized.

With over 70 public company CEO/CFO a theme did resonate:

  • There was a great recession, 07-09 that hit every company in every industry
  • This recovery has been slower than normal and in most cases we are back to only about 05-06 levels
  • The future is positive, but guarded and tentative
  • Careful growth and decision making over reckless “pedal to metal” acceleration
  • With such delicate growth, outside influences could throw us back into a slowdown easily

My ahh, haa moment of clarity came after about the sixth visit of company executives.

  1. Executives came to the edge and looked over in 07-09, as such they refortified their companies
  2. Growth has been so slow that caution remains
  3. Executives are ready for a slowdown, should it come again (this is huge and comforting)

Reflecting after this wonderful event, these company executives totally explain the lower hiring, slow wage growth, and timid expectations we are seeing in macro economic reports.

This is not a bad thing, safe over sorry ..

Have a good day !

John Kvale
8222 Douglas Ave # 590
Dallas, TX 75225 

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