Summary

Management quality is probably the single most important determinate of a company’s success. Reviewing key officers’ résumés is a good check on management’s qualifications for the job. Analyzing the firm’s accounting cleanliness tells you whether its officers are a conservative lot looking out for the firm and its shareholder’s long-term interests, or are bending the rules to achieve short-term gains. Analyzing earnings growth stability and key officer’s shareholdings gives you further perspective on management quality.

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