When we decide to invest in stocks, the first thing we often look at is financial performance: the beautiful revenue and profit figures in the financial statements. However, there is another factor that professional investors value equally: the "Executive" or, simply, the CEO (Chief Executive Officer). Because ultimately, whether a business succeeds or not depends on its driver, not just the figures on paper. This article by Coach Nookie will take you deep into why "investing in people" is another core pillar for generating sustainable returns.
A Good Business Must Have a Good Leader: People Drive Everything
Imagine a business with an excellent product, a supportive market, and ready capital. Yet, if it lacks a leader with vision and good management, that business may stumble and never reach its goals. "The CEO is the one who sets the organization's direction," the one who makes decisions in uncertain situations, and the one who creates a corporate culture where employees share common goals.
Investment history has proven that capable and visionary executives can incredibly turn around troubled companies and make them profitable. Conversely, executives who lack integrity or have flawed plans can also destroy a once-great business.
Therefore, before deciding to invest in any company, we must thoroughly understand its executives, as investing in stocks is like entrusting these people to manage our money efficiently.
How to Research and Get to Know the CEO
In this information age, finding information about executives is no longer difficult. You can find data through several channels:
📰 Read Interviews and News: Media often interviews executives of listed companies. Reading these interviews helps you understand their concepts and business visions.
🎧 Listen to Podcasts or Analysis Shows: Nowadays, there are many podcasts or online shows that invite executives for conversations, allowing us to clearly perceive their personality, mindset, and communication style.
📊 Review Business Plans from Annual Reports: The company's Annual Report officially summarizes future business plans and the executive's vision, making it the most reliable source of information.
📂 Observe Past Performance: If this executive has managed other companies before, look back at their past successes or failures to use as a factor in your decision.
What Does a Good Executive's Vision Consist Of?
Looking for a good executive is not just about seeing whether they are good speakers, but rather focusing on the substance of their vision and their tangible actions, which should include:
🚀 Clear and Achievable Growth Plan: A good executive must have a business plan that clearly outlines the company's direction for growth over the next 3-5 years, and that plan must be grounded in reality.
🎯 Ability to Solve Problems During a Crisis: In the uncertain world of business, the ability to cope with crises is one of the most crucial qualities in an executive. Decisive and intelligent action in times of trouble is the true measure of leadership.
🔎 Integrity and Transparency: This is the most important quality. Managing the business with honesty and disclosing truthful information to shareholders builds long-term trust and mitigates the risk of future governance issues.
Summary: Investing in People is Investing in the Future
Investing in stocks is thus not just about investing in financial figures, but is "investing in the people" who will lead the company's growth into the future. If you can find an executive with a broad vision, integrity, and strong management skills, it's like discovering a vital treasure in investing. Because sometimes, the most sustainable returns may not come from the numbers, but from the conviction you have in the company's leader.
Article by Coach Nookie, RoboAcademy
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Disclaimer: Investing is risky. Investors should study the information before making investment decisions.
