- We look forward to 2021.
- Strong management is key.
- Insider ownership is always critical.
From Barron’s last week, and a great article by Steven Sears. His quote is as follows regarding Disney stock:
“Executive abilities are never carried on a corporate balance sheet or given some tangible valuation, but Disney’s (ticker: DIS) executives are proof of just how much a good team can accomplish even under dramatic pressures that seem to threaten the economic essence of their company.”
And I cannot agree with him more. When looking at stocks, I always look to the leadership of the management team. That, along with strong insider ownership is always a critical key of financial investing. As we look forward to investing in 2021, I’ll make a few comments.
Always look for strong companies that have decades of experience in their area. They know the business.
Insider ownership is also a key component. Generally speaking, I look for companies that have over 15% of shares owned by management. They will look out for you, as they have their own personal funds invested in the company.
There are many undervalued REITs at the present time. If investors take a long hard and deep dive into some of these companies, they will be rewarded in the next few years buying bargains for 60 cents on the dollar.
My next 60 days will be spent looking at undervalued REITs, looking at fair market values for their properties, and then taking action to buy shares that are clearly undervalued. I wish everyone great investing success in 2021.
Also, if you’ve had a good investing year in 2020, I would highly recommend donating any potential profits to your local non-profit agencies. They may be struggling, but your donation may make a difference to them.
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