Thursday, May 6, 2010

Rod Drury ready for the long-haul with Xero

I take a number of things away from an interview I did with Xero Ltd [XRO.NZ] Rod Drury but the two things that stick in my mind are his deep passion for the business and the fact that he is in it for the long haul.

Previous to this disclosure most of us thought he was trying to build a brand to eventually flog it off but Rod has some long term goals to achieve:

Share Investor
- "Was the intention of yourself and the Xero board to build the company up as a brand with the express purpose of selling, along the lines of say 42 Below?"

Rod Drury - "No. Having sold businesses before, this time we want to grow a long term business. The market is really just starting and with accelerators like iPads, Google's up coming Chrome operating system we think that things are only just getting exciting."

While there is some merit in building a brand for someone else to buy in the short-term, more money will be made from a business for its shareholders - if it is based on good premise and run well - when the the long-term game is played. Xero has an advantage there playing the long term game.

Rod's overriding passion for his business is a motivation for those around him and the business as a whole because it provides an impetus for employees to manage themselves in a similar way and radiates out to Xero consumers - hey passion is contagious!!

I still wouldn't touch Xero with a barge pole though, not because I don't think the company is a good one, but as an investment it is one of the riskier ones for those individuals who understand the sector in which Xero operates. I still don't fully understand Xero and what they do and I like to invest in companies in which I know what they do and how they do it. I think you have to be a tech head or a user of Xero products to be able to know it well. Then if you are in that position and do know the company well and therefore see where they are going I dont blame you for investing .

Having said that I will reserve my final judgment for the promised profit for Xero in 2011 indicated by Xero management at their annual meeting last year.

I would like to publicly thank Rod for participating in the Q & A, for whatever you think of his company we don't get enough leaders of our public companies willing to put themselves under this much scrutiny.

I enjoyed the experience immensely.

Share Investor Q & A Series

Auckland Airport's Simon Moutter

Warehouse Group CEO Ian Morrice
Briscoe Group CEO Rod Duke
Ryman Healthcare's CFO Gordon Macleod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison

Xero @ Share Investor

Share Investor Interview: Xero's Rod Drury

Xero Ltd: Download full Company Analysis
Rod Drury on Xero and Growing Business
Xero set for surprise to the Market?
Love Xero?
Share Investor's 2010 Stock Picks
Stock of the Week: Xero Ltd

Discuss Xero @ Share Investor Forum

Download Xero Company Reports

c Share Investor 2010

1 comment:

  1. lucky not so contagious that you jumped, the market doesn't like the losses SP@$1.48

    But, with a forecast of monthly breakeven in June 2011 and $20m in the bank, the losses are fairly irrelevant - planned even...

    watch this space


Comment on Share Investor Stuff