Feeds:
Posts
Comments

Posts Tagged ‘CEO’

Index based investment using a company’s total stock market value is a great concept and indexes such as the S&P 500 generally provide solid low cost diversification.

Unfortunately, Wall Street has now applied this concept to “sectors” of the stock market without adjusting for the size of individual companies.  This is not only exposing investors to added risk due to poor diversification yet also handicapping newer smaller companies on which the future economy is dependent.

Let’s take a look at the two largest holdings in the MSCI Health Care Sector Index.  An index used by more than 97 percent of all large fund managers.

Screen Shot 2017-08-23 at 12.32.14 PM.png      Screen Shot 2017-08-23 at 12.37.00 PM.png

(more…)

Read Full Post »

One of the sacred tenets of good corporate governance is separating the roles of Chairman of the Board and Chief Executive Officer.   This provides a critical oversight function with respect to the activities of the CEO.  Exhibit one supporting this concept is perhaps JP Morgan CEO Jamie Dimon’s role in the current multi billion dollar scandal regarding trading losses in its risk management unit.

Meanwhile over at Intel the current Chairman of the Board is former Chief Financial Officer Andy Bryant.  The CEO is Paul Otellini.   Otellini can run the business as he wishes yet he is accountable to the board and specifically Bryant.

(more…)

Read Full Post »