Why This Will Not Do the Job for Your Stock
What could be better than iTunes? Has Apple done it again with television? What should the stock market see through this window to the future? Apple stock has everything going for it. The stock is nearly mid-way between the highs and lows of the last 52 weeks, as the first fortnight of March 2008 draws to a close. Could there possibly be any second thoughts about this iconic stock from the Computer Hardware Industry?
Succession planning is a vital though subtle aspect of stock value. The SEC does not demand detailed disclosures in this respect. Yet stocks could be gravely threatened if there are no people ready and able to step in to top positions. Is this an Achilles Heel for Apple? Certainly, its main rival has established executive succession of the founder.
Private equity has traditionally emphasized management quality. Entrepreneurs know the invaluable roles played by star players. Founders tend to bask in the glory of their supremacy. Many of them are unable to grow new leaders, their technical expertise notwithstanding.
It can take decades to nurture a future CEO. Transfers, specialized training, and motivation must all blend harmoniously to groom the right people adequately. Similar care is needed to make recruitments from outside the company to work.
Do you monitor human resource development in companies you own? Are you concerned that your stocks could dive when key people retire? Have you a method for evaluating stocks on this vital parameter.
