Stock Advice: Startup Companies: Look at Management Pay

Here is a pretty quick tip.

I've bantered about the importance of bad management vs. good management.

In good times, this might only be partially important.

In rougher times, only places with good management survive downturns--usually. I'm not looking to discuss exceptions here. I'm only setting up my point.

Without sitting beside a company's management every day, you can only speculate whether the management of a particular company is good or bad.

However, what is, at least, one major flag?

Advice: Reduce Angst Buying or Selling Stocks

Someone that I know invests in stocks, and he does really well.

However, he says that the stock market tends to drive him nuts.

He told me about a time that he heard something about a sudden event on the radio, and the first thing he thought to himself was, "I wonder how this will affect the price of XYZ stock."

The second thing he thought to himself is that he's going absolutely NUTS. The event had NOTHING to do with his stock. He was just THAT consumed with his stock.

He asked for some advice on how to avoid that emotionally fueled angst he gets every time he's in the stock market.

Here is what I wrote to him...........

Investment Advice: Keep Your Composure When Your Stock Price Goes Down

There is advice about stock investing that someone gave to me...

If the company is doing the right things and you bought it at a price that made sense, the stock price will rebound, even if it drops. It just might take a while.

I take a look at examples of what I've seen since I started investing in 2008.

Should you get down when your stocks do?

No matter how experienced you are, nobody really enjoys buying in a stock, only to watch it down...down....and down some more.

When your stocks go down, do you panic? More importantly, should you?

Stockowners, are you getting in position?

My second rule of investing is...Buy it ON SALE! (Get a good price on it.)

Since learning how to manage money, I've learned that it's not important HOW MUCH money you make, it's HOW MUCH YOU KEEP.

This has been invaluable, as this has allowed me to accumulate more money than many of my former coworkers who earned more than me. However, it's not the whole story.

The whole saying should read...

Buying the Stock Based on the Product--not its Price: Toyota

I know someone who bought Toyota (TM) a couple of weeks ago.

I remember telling this person that I was looking to possibly buy TM--IF they dropped to the low 60's, if not fully drop into the 50's. During the past 1-1/2 years or so, they've been struggling with higher recall levels than usual. However, their PR has been taking HUGE hits since this whole accelerator sticking (made by supplier CTX), causing a lot of accidents.