Tuesday 12 June 2012

Companies with dubious Management should be avoided

The management team can either take the company to new highs or lead to a perfect failure. 

i. Policy framework:
The management team of the company is the one who frame the policies as well as execute them. A careful study of their philosophy, how well do they work together can lead to meaningful conclusions. A company with dubious management will frame policies to their advantage and will take investors interest as a second priority.

ii. Background and educational qualifications:
A study of the management team’s educational background and previous work experience is essential before investing in the company. If the management team is dubious, it will at some point in the future be reflected in the stock price.

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