If you’re investing your money in companies, then you’re
probably curious, and sometimes even downright anxious, to know how those
investments are likely to perform, as you should be. However, you don’t have
all that many ways to really know for sure how your investment will perform,
outside of trading on the informational illegally, but who wants to take that
route and wind up in prison?
Because of how difficult it can be to really know how an
investment will perform, people have developed some funny little ways to
determine how successful a business is likely to be and, thus, how successful investments into that business are likely to be.
One of the crazier methods for determining a business’
success, for example, is looking at how often the CEO golfs! Does that sound
nuts? Well, believe it or not, research has actually shown that the more a CEO
golfs, the poorer that CEO’s business’ return on assets is likely to be. To
give this trick a try, check the Gold Handicap Information Network to see how
(and how often) the CEO of interest to you is performing!
If the golfing thing is a little too “out there” for your
tastes, then try and take notice when a CEO makes other investments, especially
if they seem a little on the “wacky” side. Investing in things totally
unrelated or extravagant, like a sports stadium, for example, can often mean
that a business doesn’t have its priorities straight and is likely to face
failure in the future. Of course, you have to be careful with this one because
sometimes these types of investments can also indicate that a business is doing
quite well and has extra money to spend!
Of course, if you don’t like to play guessing games and
would rather have a much clearer picture of how your investments are likely to
perform and whether or not you’re making smart moves, try finding a good
financial adviser who knows the ins and outs of the investing world and can
provide you with solid feedback on what you should and shouldn’t do and the
likely outcomes. After all, that’s a whole lot more accurate than stalking
somebody’s golf game!
