9. Analysis Tool #6: Evaluate Management Quality

Many professional money managers consider management quality an important consideration in their analysis. They often visit the company and spend a day or two talking with management to determine if its key officers are in tune with stockholders’ best interests. It’s impractical for individual investors to visit companies and meet with management. However, we still have clues at our disposal to accomplish the job.

Key Executive and Board Quality

Start by reviewing key officers’ resumes. Reuters’ Officers and Directors report includes biographies of key executives and board members.

Look for officers with relevant experience. At least some should be crusty veterans with years of experience in ...

Get Fire Your Stock Analyst!: Analyzing Stocks On Your Own, Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.