Lessons Can Be Learned From The Demise of Dick Smith

A fund manager says lessons can be learned from the demise of Dick Smith, which he describes as 'the greatest private-equity heisst of all time'. The electronics retailer was placed in receivership yesterday after its banks refused to give it more money, and a sale is now likely. The chief investment officer at the Sydney-based Forager Funds, Steve Johnson, says investors should have been more wary of buying into the company, given it was bought for just 20 million and sold for 520 million nine months later.