Business management as a discipline is more popular with large corporations than it is with small business owners and stock investors. This may be because a top business school education is so outrageously expensive. Students who invest to obtain MBAs need high salaries and extravagant perquisites to realize material returns.
Business management, in an academic sense, can provide maximum impacts on small enterprises and individual stock portfolios. This new mid-week series seeks to apply new business management thinking to portfolios of retail investors.
Growth is a self-destructive shark. A flash-in-the-pan disappoints as much as it delights. Information Technology and Telecommunication corporations, which set scorching rates of growth during the last decade, have created stockholder expectations that are extremely difficult to meet in an enduring manner. Business management gurus are now sure of how the successful can maintain momentum. Here are five of their insights that small cap investors can use.
1. Split a large portfolio in to smaller ones. Copy financial institutions, which create funds with specific and unique objectives.
2. Reward and foster creativity. Look for stocks that can buck the trend. Back management teams that take assertive actions in trying circumstances.
3. Manage your risks. This is related to point two above. Prefer Fixed Return and Binary Options to staking all your savings on wild business ideas.
4. Discount macro-economic indicators. Become a reasoned contrarian. Look for qualitative signals at ground zero.
5. Turn green. Think in sustainable terms. Back stocks that respect the environment. Look at business prospects in terms of what it contributes to society. Know that exploitation in any form will not last.
Business school faculties and alumni thrive on jargon. The five points listed above will help you whip a stock portfolio so that it stays ahead of the pack, all the way to the finishing line, and beyond as well.
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