Every investor has their own metrics they like to weight when valuing a company, but one of the most important is perhaps the least measurable: good management.
It's easy to forget that the ticker symbols and pieces of paper we trade daily are actually rights of ownership in living, breathing companies, and that those companies can be made or broken by their executives.
Having a good CEO matters for every company, big and small, but it's even more important when investing with small caps because there is more to gain, and each decision the CEO makes has an even larger impact on the company.
Austin Smith owns shares of Apple and The Buckle. The Motley Fool owns shares of Apple, The Buckle, HEICO, and Boston Beer and has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, short JAN 2014 $15.00 puts on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Motley Fool newsletter services recommend Apple, The Buckle, HEICO, and Boston Beer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.