The character of the people who manage the company you own will, in many ways, predict the quality of the investment you have made. We feature some of our favorite managements to help you in your search for great corporate leaders.

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By TMF Staff
January 16, 2001

When you buy a stock, there are probably all sorts of factors that go into your decision. You look at the balance sheet and the income statement, the industry in which it operates, and the competitive advantages of its products or services. You might even visit the company's website, study its advertising and marketing strategy, or delve deep into the company's annual reports and Securities and Exchange Commission (SEC) filings.

But, do you ever stop to consider who's minding the store?

When you buy a stock, you're getting a whole lot more than just a ticker symbol to root for. There's an actual business behind the stock you buy, a business with products, services, assets, obligations, and people. The people in charge of the enterprise -- the managers, the executives, and the board of directors -- far more than any other factor, have the greatest impact on the success or failure of the company.

What makes a great CEO? Apart from honesty and integrity, there are no hard rules. The bold behavior we might admire in a Silicon Valley gunslinger could be considered reckless in an industry where a more sober business approach is required (if Steve Jobs is ever named head of Goodyear Tire & Rubber, sell!), but ultimately the executives we admire are the people who, one way or another, have managed to get the job done.

The character of the people who manage the company you own will, in many ways, predict the character of the investment you have made. Every investor can look for certain qualities to admire in a corporate leader, and you might even develop a list of characteristics to look for in the managers of the companies you are considering for your portfolio.

That's exactly what our team of Fool writers has done. In this article, we name our favorite business managers and some of the reasons why they've earned the reputations they enjoy. Some are admired for their fearlessness in taking an industry into uncharted territory. Others earn respect for their deep understanding of the process of managing their corporate brand, and still others for their ability to see what is important in a miasma of conflicting economic signals. Above all, these managers have succeeded in creating value for their shareholders, often by organizing their resources in ways no one else in their industries had ever previously attempted.

Consider this your invitation to begin your own study of the traits of successful business leaders. When you become familiar with the characteristics that lead to success in business, you're more likely to recognize them when you are looking for companies you'd like to own.

-- Jerry Thomas, TMF Cheeze

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