I want to start my own stock index to follow the 25-50 best leadership/management headed firms. It will be a huge project and probably take many weeks of intense study to finalize the companies. I will operate it with a set of rules and opinions. The rules being has to be publicly traded and a set of guidelines and factors that will separate one from another. It will be important to maintain objective standards to show that well run firms are better investment choices than poorly managed firms. This is just the beginning of the index so will take some time to formulate rules. My opinion on the company factors into the overall rankings and weight in the index. I don't think I want a price weighted average because price has nothing to do with the value of management but instead a function of earnings and shares available.
After picking a stock, I will then put some of the analysis on the blog for you to critique and you can see where I am coming form. Let's say I choose a stock a day to add to the index and analysis. Management is important to a business and can make or break the company as a whole. Let us go and find the best managed companies.
No comments:
Post a Comment