I like executives that eat their own cooking. Managers can make all the rosy projections in the world, but if they’re not willing to step up and put their money where their mouth is, it tells you what they really think. High insider ownership also aligns the interests of the CEO with us shareholders. If a manager invests his wealth elsewhere, then what incentive does he have to promote the well-being of investors as opposed to lining his own pockets? You don’t have to worry about executives looting the business when you know their wealth depends on the long-term health of the company...
Therefore, it should come as no surprise that stocks with high insider ownership tend to outperform over the long run. The most obvious example, of course, is Warren Buffett, who has kept almost his entire net worth invested in Berkshire Hathaway Inc. (NYSE:BRK-A, NYSE:BRK-B). You can also point to other popular examples, like Elon Musk at Tesla Inc (NASDAQ:TSLA), Bill Gates at Microsoft Corporation (NASDAQ:MSFT), and Steve Jobs at Apple Inc. (NASDAQ:AAPL).
Source: Income Investors
Related Articles:
- Harvest the Fruit
- 4 Dividend Stocks Delivering The Secret To Successful Investing
- The Magnificent Marvelous Money Machine
- 5 Five-Star Dividend Stocks
- 26 Income Securities For A Well-Rounded Asset Allocation
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
If a company pays, say, 14%, you would only need to put up $71,429 to earn $10,000 in annual dividends. Of course, we know that double-digit...
0 comments
Post a Comment
Post a Comment