The Cult of Committee by Barbara Kiviat in Time Magazine.
Interesting piece on group decision making in an investment firm.
- “There are a zillion independent variables, and it’s very hard for one person to think about them all.”
- “When an analyst thinks a company is something Dodge & Cox would be
well advised to hold for five years, the analyst makes the case to an
- “It’s not a strict vote…The process…is like
taking the temperature of the room.”
- “That ability to make complex strategic decisions collectively requires
an almost Benedictine devotion to corporate togetherness, starting with
- “Dodge & Cox has also found there to be an important structural
element to team decision making. “Committees react best to a specific
proposition,” says Bryan Cameron, director of research and a member of
the committees that pick domestic and foreign stocks. So when analysts
make a presentation, they propose a particular course of
action–increasing the percentage of Wal-Mart from 2% of the portfolio
to 2.2%, say. The analyst advocates, and the committee
meditates–somewhat like a jury.”
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