Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 151

Why bother with company visits?

As an institutional investor, each year we arrange in excess of 1,000 face-to-face meetings with the management of companies and site tours of their operations. The visits provide deep insights into a business and its operations and are critical to our investment decision-making process.

But with companies required to disclose to all investors material information about their business, why bother with company visits?

The continuous disclosure regime

Pursuant to ASX Listing Rule 3.1, market participants are required to immediately disclose to the market all material information about their business, with the exception of confidential information. The Australian Securities and Investment Commission (ASIC) is charged with market surveillance and enforcing the continuous disclosure obligations. Commissioner John Price explained the regulator views continuous disclosure by companies as:

 “a bedrock of market integrity … essential to two of ASIC’s priorities: fair and efficient markets and confident and informed investors.”

Over the past decade, compliance with the market’s continuous disclosure rules has been significantly tightened. In August 2010, ASIC took over responsibility for supervising trading activity in Australia’s domestic financial markets from the Australian Securities Exchange (ASX). Since this time there has been a marked increase in insider trading prosecutions. In 2013, ASIC implemented the Market Analysis and Intelligence (MAI) surveillance system enhancing the regulator’s ability to monitor market activity. ASIC can now conduct real time surveillance of market trading activity and has the ability to analyse large data sets to identify irregularities on a timely basis.

So then, with a rigorous continuous disclosure regime requiring companies to disclose to all investors material information, what do we achieve by visiting so many companies?

1. Efficiently gain insights

Compared to a day spent researching and analysing public information on a company at a desk, a one-hour meeting with a company’s CEO discussing their business allows us to quickly ascertain how they generate profit. It helps us to determine a value for the business. With limited sell side analyst research available on the majority of the 2,000 plus ASX-listed companies (that is, those falling outside of the S&P/ASX 300 Index), company meetings are particularly critical.

2. Assessing management

Our assessment of a company’s management team is critical to our overall valuation of a business and one of the most important factors informing our investment decisions. We gather some of our most valuable insights about a CEO and senior executives in our face-to-face meetings. Much like in job interviews, we generally form a view of a person within the first one to two minutes. We gain a powerful impression by observing the body language and the overall demeanour. For example, whether they maintain eye contact and what their posture is. In addition to non-verbal communication, a person’s tone of voice and how they interact with their colleagues is import. Meetings help our understanding of management’s motivations and ensure their interests are aligned with their shareholders.

3. Understanding culture

One of the key filters we apply when making an investment decision is looking for positive corporate culture. Research demonstrates a strong correlation between a company’s culture and its financial performance. A good corporate culture is more important than ever to attract younger talent with Millennials (the generation following Generation Y) seeking more flexible work arrangements. For example, an increasing proportion of teaching graduates are now preferring part-time to full-time positions for flexibility.

As a general rule, annual reports and other reported information provide very limited insights into a company’s corporate culture compared with a meeting. A meeting or site tour allows us to truly gauge the state of a company’s culture. For example, we can observe how a manager engages with their staff at all levels of the business.

Silver Chef Limited (ASX: SIV) is a company we hold in the highest regard for their corporate culture (disclaimer: we also invest in this company). Providing hospitality equipment funding, Silver Chef is committed to giving back to society (through support for Opportunity International) and to contributing to employees’ wellbeing by promoting values of work-life balance, health and happiness.

4. Deeper understanding of financials

Financials are the life blood of a business and in making our investment analysis, reconciling cash flow is our focus. Frequently, our investment team has questions for the Chief Financial Officer about a company’s reported financials. If we are not satisfied with management’s responses, for example, questions about the numbers cannot be answered or we do not think they stack-up, we make a conclusive decision not to invest.

5. Determining consistency of ‘story’

At least every six months we meet with management after results are reported and each time we ask some of the same questions to ascertain if their ‘story’ remains the same. A lack of consistency in a company’s message over time raises concerns about their strategic direction and is a key factor impacting our investment decisions. In our view, the disciplined and consistent execution of a company’s strategy over time is a measure of management’s ability, as well as their trustworthiness.

6. Industry insights

Meetings with management are an important source of intelligence on the market in which the company operates, including their competitors. We gain insights from company visits that enhance our understanding of the industries in which we invest and their key drivers.

In summary, management meetings and company site tours are incredibly valuable for a range of reasons. In our view, company visits will always form the core of a ‘bottom-up’, stock picker’s investment approach.

 

Chris Stott is Chief Investment Officer at Wilson Asset Management (WAM). WAM will soon provide investors with access to research-driven and index-unaware funds management focused on Australia’s large-cap listed companies through its new listed investment company, WAM Leaders Limited (ASX: WLE). To find out more, see here.

 

RELATED ARTICLES

What we look for on company site visits

You the speculator

banner

Most viewed in recent weeks

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

Super crosses the retirement Rubicon

Australia's superannuation system faces a 'Rubicon' moment, a turning point where the focus is shifting from accumulation phase to retirement readiness, but unfortunately, many funds are not rising to the challenge.

Latest Updates

Investment strategies

Why I dislike dividend stocks

If you need income then buying dividend stocks makes perfect sense. But if you don’t then it makes little sense because it’s likely to limit building real wealth. Here’s what you should do instead.

Superannuation

Meg on SMSFs: Indexation of Division 296 tax isn't enough

Labor is reviewing the $3 million super tax's most contentious aspects: lack of indexation and the tax on unrealised gains. Those fighting for change shouldn’t just settle for indexation of the threshold.

Shares

Will ASX dividends rise over the next 12 months?

Market forecasts for ASX dividend yields are at a 30-year low amid fears about the economy and the capacity for banks and resource companies to pay higher dividends. This pessimism seems overdone.

Shares

Expensive market valuations may make sense

World share markets seem toppy at first glance, though digging deeper reveals important nuances. While the top 2% of stocks are pricey, they're also growing faster, and the remaining 98% are inexpensive versus history.

Fixed interest

The end of the strong US dollar cycle

The US dollar’s overvaluation, weaker fundamentals, and crowded positioning point to further downside. Diversifying into non-US equities and emerging market debt may offer opportunities for global investors.

Investment strategies

Today’s case for floating rate notes

Market volatility and uncertainty in 2025 prompt the need for a diversified portfolio. Floating Rate Notes offer stability, income, and protection against interest rate risks, making them a valuable investment option.

Strategy

Breaking down recent footy finals by the numbers

In a first, 2025 saw AFL and NRL minor premiers both go out in straight sets. AFL data suggests the pre-finals bye is weakening the stranglehold of top-4 sides more than ever before.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.