Pinned straw:
Adding on to my post. Another interesting thing about the business model that doesn't seem to get much attention is the 10 year 'partnership' agreement. They require owners to stay with the business for 10 years and I have 2 thoughts: 1. 10 years is a long time and a lot can change for people, leading to disgruntled owners who are stuck in the business, and 2. there will be a rolling over of owners, KPG has been listed for 8 years now, every year now a larger number of their firms will reach the 10 year mark where you will see 'partners' leaving the business which will leave a large hole.
People are fickle, and I think you need that founder/owner mentality from an individual firm perspective to drive the culture, operations and efficiency, otherwise this just bloats as it scales.
@ PortfolioPlus. I paid attention in Year 4 at school, and remember what happened to the original Kelly Gang.
UlladullaDave, saw your referenced “exclusive interview” with Brett Kelly on Latticework. The interview is headlined: “Australia’s Berkshire Hathway in the Making”. How’s that for starters - just mind-blowing modesty.
Every couple of years the ASX seems to throw up another financial pied piper knob - Kerr Neilson (Platinum Asset Management), Hamish McDougal (Magellan Financial Group), Rob Luciano (VGI Partners, now Regal) + more.
I have no idea of how all this is going to end for Brett and the indoctrinated shareholders at KPG. But for god’s sake Brett, it’s an accounting business. A roll up accounting business. So Brett tells us KPG have an “Owners Manual”. Great. What is KPG doing that any other accounting firm cannot do aside from charging high fees and working the butts off young graduates recruited to the cult?
Brett’s look and demeanor are a reminder of Peter Fitzsimmons. I guess one is telling historical fairytales, the other financial ones and both pumping the retail crowd. At least the damage done by Bandana Boy is limited to a lost afternoon spent falling asleep with one of his puerile novels, or his assisting in tanking a referendum or two.
Brett, even without a bandana is far more dangerous. Get too caught up the Brett cult you risk ruining your retirement.
(Scoonie, you are a just cynical old prick. You will ruin it for all of us. Just in case you didn't get it, you’re an arsehole Scoonie).