Tuesday 19 July 2016

The Five Rules for Successful Stock Investing 8

Analyzing a Company – Management

Excellent management can make the difference between a mediocre business and an outstanding one, and poor management can run even a great business into the ground. Your goal is to find management teams that think like shareholders – executives that treat the business as if they owned a piece of it, rather than as hired hands.

Executives' pay should rise and fall based on the performance of the company. [...] Firms with good corporate governance standards won't hesitate to pay managers less in bad times and more in good times, and that's the kind of pattern you want to see as a shareholder.

http://books.danielhofstetter.com/the-five-rules-for-successful-stock-investing/

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