Total Pageviews

Saturday, July 6, 2019

I was interrogated for 6 hours!



Before I tell you why I like IRM so much, in addition to my brief history introduction as I posted last week, let me first share with you a personal story. Sounds a bit odd for this topic but just bear with me for a few minutes.

 

About a year ago, I got a call from an attorney informing me that I was involved in a lawsuit and I was asked by the plaintiff’s attorney to attend a deposition. I almost fell off the chair when I heard about this as I had never had any legal conflict with anyone I was aware of! It turned out it was a company to company lawsuit and I was identified as one of their witnesses due to my involvement in the work 15 years ago! Yes, 15 years ago, for which I totally forgot what it was as the issue was not part of my main daily work, but just something I was also responsible for as a department manager at that time. I cannot share with you the exact details but suffice to say, my involvement was really limited and therefore I could not recall anything what I did for it at that time. As my initial reaction with relief I thought it would be an easy pass for me to simply answer some questions, but I was too naïve! I was actually interrogated for 6 hours by their lawyers with all kinds of rather difficult to answer questions. Fortunately I was well prepared by my lawyers, who spent about two days with mock Q&A and also told me some tricks that laymen like me would have never thought about how to deal with effectively. Honestly it was a very good experience I must say and a very useful one for everyone if you ever get such a chance for something not directly related to you but you were fully prepared by a lawyer free of charge of course! While it was kind of ordeal to go through it, I really enjoyed the process as I have learnt a lot. At the end of the deposition, I got an interesting feedback from their lawyer, “I’m really impressed with your English and Q&A skill.” “Of course, I’m the father of the national debate champion”, I joked with him. In reality, following the good preparation by my lawyers, I just need to stick to a few principles: never volunteer any information unnecessarily. Better to answer simply with “I cannot recall” as needed than speculating on anything. One trick the lawyer often uses is to ask you something that makes you really stupid if you don’t answer the way they want to hear. It is a big trap that you should not fall into. It is not the time to show your ego and how smart you are or try to save your face by following the normal logic for our daily life questions.

 

So what’s the relevance of my deposition to IRM, you may ask? Well, any legal issues are always associated with abundant documents, big or small. Even for my case which was really a very tiny portion of the whole case, I was appalled to see how many documents they had retrieved from the records by both sides. Each signed paper and each email I sent 15 years ago relevant to this issue was pulled out on top of other relevant documents, a big pile in front of me. That’s why it took about 6 hours to go through all of these, one by one with questions!  Without seeing them again, there was no way for me to recall anything about what I did and said about it back then.  So as a side note, be very careful and mindful for any written notes you produce in any format. All could be used against you in a legal case indeed. Since the company I worked for at that time was one of the biggest in the world in the sector, they must have to use an archiving service to keep all the business records. The chance is high that they probably just use IRM for archiving as about 94% of the Fortune 1,000 already uses this company's services to secure their documents.  Iron Mountain stores physical paper back-up copies for its clients. The average document storage length is 15 years. This means Iron Mountain has reliable revenues it can count on moving forward. What's more, Iron Mountain is not dependent on one big customer. Its biggest customer accounts for just 2% of its revenue. So it’s greatly diversified with reliable income year in year out. As you must know, US is probably the only country that involves so many lawsuits for our daily life (personal or business). Each case contains tons of documents that must be archived for years before, during and after the case is done. But legal documents are just a tiny portion of the society at the grand scheme of things. Every day, each company or institution is producing a vast amount of documents that must be kept and archived either for a set time period or permanently for various reasons. For example I was told by the Regulatory expert that in average for each drug approval, the company had to submit two trucks of documents to the FDA in the past when paper submission was the only way for drug approval. Each year, we are talking about hundreds of drug submissions and you can do the math how many documents we are talking about. Again, this is just another small portion of our life. I guess you must have got my point that record archiving service is a huge business that must have regardless in what economic condition, booming or recession. In a way, it is a recession-proof business and IRM is the top player in this field with a long proven track record. Of course, with a fast changing world that is entering into the digital era, IRM is not sitting idle but is also transforming to adjust for the new way of life. You can read more here: Digital transformation is the streamlining of your business and its processes and models. By integrating digital technology into your ways of working, you can transform how you operate and deliver value to your customers, and keep your organization up to date with the latest technologies.                    

 
You may wonder why I spend so much time to write about this company. It is definitely not a high profile high growth Street darling type of company; rather it is really a very boring business that is not sexy and attractive at all. But this is really what I like for my long term investment: boring but must-have business that is gushing out reliable cash regardless of the economic condition. As you know I was first attracted by Microsoft 10 years ago when it was a deadly boring company and stock. It turns out to be one of the best for my long term investment with dividend reinvestment. I think IRM is something similar. Although it does not have a long track record for dividend and it only started to pay dividend nearly 10 years ago, it has been a very good dividend grower. Given its very strong and reliable cash flow, I think this will continue for long time. Since it is not a Street darling at all, no one is chasing it. So it can keep a slow but steady share price appreciation with rather high dividend yield, 8% for now as REIT. It is a perfect stock for DRIP in my mind. While by no means it can make you rich overnight, it will surely grow your wealth significantly in the long run. That’s the essence of long term DRIP investment that I like the most!

No comments:

Post a Comment