Failing to recognize the importance of incentives often leads to major mistakes

Part 2: If you figure out the right things to buy, selling becomes a lot less important

As the great Charlie Munger said in 1995 in his famous "Psychology of Human Misjudgment" speech at Harvard, "Show me the incentives, and I’ll show you the outcome." He consistently emphasized the importance of incentives, as they are crucial in driving individual behavior. When analyzing the future value of the company, it is crucial to consider the alignment of interests between management and shareholders to facilitate long-term value creation. So now let’s continue the Cape EMS analysis to explore the shareholder structure and management incentive, delve into its technical charts, and assess its valuation using fundamental approaches. Additionally, we will examine the margin of safety from a risk management perspective and provide insights into this investment opportunity.