Mr Juggles’ Investing Commandments 5a and 5b

by Mr Juggles

In this installment (Read Mr Juggles Investing Commandments #1 and #2, #3 & #4), the focus is differentiating real passion in a CEO from unreal CEO’s.

Commandment #5: Invest with CEOs who are smart and passionate. Do not invest in companies with fabricated CEOs.

5a. Nidec (NYSE: NJ), a Japanese electronics comany that specializes in brushless motors, has a CEO with smarts and passion. Investors who have bet on Mr. Shigenbou Nagamori have been well rewarded. Here’s a passage from a recent Barron’s profile where Mr. Nagamori discusses the business potential of using brushless motors in air conditioners:

“Can you hear this conversation?” Nagamori asks, suggesting we can because “this hotel has Japanese motors for its air conditioners.”
Last week in Boston, my hotel air conditioner was so loud, I couldn’t sleep,” he say. “Finally, I lulled myself to sleep by thinking of the business opportunity!

5b. CEOs to avoid include that of China Energy Savings Technology (OTC: CESV), which was suspended from trading by the SEC this week. Here’s the relevant excerpt from the SEC order:

Questions have arisen regarding the accuracy and completeness of information contained in China Energy’s press releases and public filings with the Commission concerning, among other things: (i) the company’s purported ownership and control of its sole asset, Shenzhen Dicken Industrial Development, a manufacturer of energy saving devices located and doing business in the People’s Republic of China; and (ii) the existence and/or identity of the company’s purported former Chairman and Chief Executive Officer, Mr. Sun Li.

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