Wednesday, 9 December 2009

Are You CEO or CFO?

When you look at your stock, do you just strongly focus on hard numbers and balance sheet, and ignoring other aspects of it; then you are behaving like a CFO.

A good CFO who have broad understanding of other aspects of businesses may have a chance to be promoted to CEO. In real life, we have seen many CFOs been promoted to CEOs.

A CEO goes beyond looking at just hard numbers, he/she looks at other aspects of the businesses such power of branding, product growth, market demand and supply, pricing, etc. He/she is always thinking of how the company can be taken to greater height; unlike the CFO who is always crunching hard numbers to maintain margins.

If you are too focus on FA, then you are a CFO, and doesn't concern on other aspects of a stock such as market liquidity, demand and supply, industry, sector, and stock trend etc.

If you practice the Five Elements Of Investing:
  1. FA,
  2. TA,
  3. Money Management,
  4. Risks Management,
  5. Emotions Control
then you become a CEO.

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