All Press Releases for July 01, 2018

The Investor's Advocate

Whether to Keep a Stock after its Legendary Leader Leaves

    CHICAGO, IL, July 01, 2018 /24-7PressRelease/ -- What should you do if the person most associated with the success of the stock in which you own, retires? This question is addressed in detail by advisor and owner of wealth management firm The Planning Perspective ( Anthony Rhodes, in a recent post on his How To Invest blog called Chasing Lightning ( "This is a situation that most investors rarely think about, but probably will have to confront at various points during their investing years." he said. "But although it's rarely thought of, the ramifications of making the wrong decision can have a considerable impact on the long-term value of their portfolio," he followed.

The issue becomes front and center due to both the recent run of the stock market, which has caused many employees' 401(k)'s to swell, and the growing attention and influence that iconic CEO's are having on our popular culture. More and more Americans are able to recognize the names of these powerful chieftains, and are also readily able to identify the companies in which they represent. With such acknowledgments being given to these executives, what happens to their company's stock value once they are no longer aligned with the companies in which they symbolize? "There's no doubt that legendary CEO's have earned the public attention in which they garner." said Mr. Rhodes. "But that attention may also prove to be a double-edged sword once the time comes to replace them," he added. "When the public begins to associate a particular person with a company or brand, it's difficult to remove that impression, which makes the job of replacing him or her more difficult for their successor." he concluded. The post outlines genuine scenarios which detail this difficulty, and provides guidance for investors to consider when or if they are ever confronted with this situation.

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