Oldendorff Centenary Book - Flipbook - Page 106
OUR COMPANY
Shipping is all about ‘riding the waves’ of the
market. As Warren Buffet says: “Be fearful
when others are greedy. And greedy when
others are fearful.”
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KEEPING A MARGIN OF SAFETY
RIDING THE WAVES
We keep a wide margin of safety,
so we can sleep at night. We don’t
want to wake up one day and find
ourselves being dependent on the
kindness of strangers from the
financial world!
We adhere to Warren Buffett’s
motto: “Be fearful when others are
greedy and greedy when others
are fearful.” Shipping is all about
long-term positioning and “riding
the waves” of the market, which
contributes a lot more to building
our net worth than trying to guess
next week’s market.
Therefore, Oldendorff Carriers
maintains a low leverage and a
sufficient cash buffer at all times.
Our debts should not exceed the
cash that we hold. Profits are
not being paid out as dividends
– only to be squandered by the
owner – but are retained to build
the capacity of the company. In
bad times, cash is needed both
as a buffer and to buy low-priced
assets. We take risk management
very seriously, as we also have a
responsibility towards our people.
Our creditworthiness is paramount.
We are ready to take calculated risks,
but should not expose ourselves
beyond the conservative parameters
set by our executive board.
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We tend to buy when the herd is
heading the other way. Buying
quality assets at reasonably
low prices is the prerequisite for
running a successful shipping
company. We see them as the tools
of our trade, so they must have the
necessary features to serve our
clients well. Paying a bit more for
quality makes a lot of sense.
However, sometimes the best
strategy is to do nothing and just
wait – “ass-sit management”. Other
times call for quick and decisive
action. In any case, a counter-cyclical
strategy is absolutely essential for
our survival and growth.
