MBO Infrastructure for Business & Stock Investment

MBO is a way of life more than a business management method alone. The wide gap between the MBO way and normal functioning may be a major reason for its neglect in conventional business.

Here is a reference to a book that you can use as a reference to implement MBO:

Drucker, P, 2007, The Essential Drucker, Butterworth-Heinemann

The rest of this post will dwell on work habits that can help a stock investor graduate to MBO.

Recording, Reviewing, and Restriction are the 3 Rs of MBO.

Objectives must be written down.

Performance should be measured regularly, and preferably independently.

Resource limitations should be stated expressly.

Why is any of this different from common stock investing?

Do you have written objectives for your stock portfolio?

Who reviewed your alpha and beta last?

Are authority limits, finances, hardware, time, and knowledge resources specified?

You will see that MBO takes time but costs nearly nothing. Anyone can learn the skill. An MBO-directed stock portfolio is unlikely to lose more than you can afford. It protects you by defining a worst case scenario.

MBO helps you implement strategy in a risk-management ambiance.

Post below or email StockWay.MyView@gmail.com if you would like some help with applying MBO to your stock portfolio.

The stock market scene of June 2008 is one of great crisis. We have to leave general thoughts on strategy aside, and try and put together an emergency plan for the rest of the month.

Please come back tomorrow, and let us put our heads together.