But when you make investment decisions based on representations made by management, then you lose money and then you find out management's representations are BS, do you think that is okay?
The way to avoid this situation is not to make investment decisions on the basis of management representations, because those are always going to involve elements of embellishment.
Instead, invest on the basis of what the company's financial statements are saying. Because they can't be falsely represented (unless the company's managers and its auditors are actively committing fraud, which isn't the case here).
If one bought shares in companies based on what company managers were saying, one would end up owning most of the stocks listed on the ASX.
"Management are there to serve shareholders and to act honestly, not to deceive us. I think if you were in our shoes, you may have a different view."
Again, I hate to be smug, but the reason I'm not in the shoes of RFG shareholders is because I didn't take as gospel what management were saying; instead, I looked at the audited financial statements.
And I am not alone... there have been a great many posts on this forum over many months where others have flagged accounting oddities or valuation concerns, so it is not some sort of unique and proprietary insight that I possess.
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