Wealth-Coaching

Investing in a company that adheres to a share-holder style of management eliminates the ‘enrons’ of investing in corporate stock.

Here are three questions that can help you decide if your company is holding the right ‘bag’ for you to put your money into.

• Do the executives have a significant portion of their net worth invested in the stock? If so, does the ownership come from options or from outright, honest-to-goodness cash purchases?
• Does management have a history of repurchasing stock when it appears undervalued?
• Have dividends increased regularly for at least the past ten to twenty years?

Answering yes to these questions will give you an added assurance that the management of the company is there for the long-haul and wants everyone to succeed.

Although evaluating a company won’t guarantee success in the investment, it will give you a little bigger piece of mind.