Stock Investing 501: Pinpoint a Great Leader Early
As a savvy investor, you're constantly looking for the edge to push your returns ever higher. One of those edges that may be hard to find but can pay literal dividends is a company's leadership. Companies with great leaders who are the rare mix of humility and an unwavering commitment to excellence have been shown to generate above-market returns in the past. Here's some ideas on how to find that needle-in-a-haystack and stick with them for the long haul.
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In his book "Good to Great: Why Some Companies Make the Leap... and Others Don't," Jim Collins outlines 11 companies whose stocks significantly outperformed the rest of the market. While several of the companies he studied have since gone under (Circuit City anyone?), Collins introduced the idea of a Level 5 Leader as a common element among each company's atmospheric rise.
Source Fool.com
