When beauty doesn’t equal brains
When picking equities, Outsider’s years in the investment management industry have taught him there are multiple different factors affecting whether to invest a stock.
Analysing valuation, business growth, sales forecasts, earning ratios mean it can be a mindboggling affair to find those select stocks which will shoot the lights out for your returns.
However, Outsider has discovered a much simpler rule to use.
According to one Australian equities fund manager, the rule is whether the chief executive of the selected equity is “hot or not”.
The basis for this mindset is that several companies which have been run by model-worthy chief executives had since seen severe share price falls, proving beauty doesn’t necessarily equal brains.
Outsider thinks there might be some value in this rule, after all, there are many people out there who have lost money after being swayed by a beautiful or charismatic person.
Outsider hopes the CEOs of the companies of the stocks that the fund has chosen don’t take this news too personally.
AUTHOR
Staff Writer
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