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COMMENT
Get Rich With Good Bosses

By Maynard Paton (TMFMayn)
December 20, 2005

How can you get rich from company bosses? Find the ones that have already made shareholders a heap of money and look to buy into their firms. It's a philosophy I use for Champion Shares.

Good management is all-important when picking individual shares. For instance, I doubt BP (LSE: BP.), Tesco (LSE: TSCO) and ARM (LSE: ARM) would have performed so well without the aid of Lord Brown, Sir Terry Leahy and Sir Robin Saxby!

To identify good bosses, I just follow Warren Buffett's advice -- "The figures tell us more than management." The figures I look at in particular include:

1) Sales, earnings, cash flow and dividends (i.e. are they growing?), and;

2) the board's shareholding (i.e. is it significant?). You see, I believe a boardroom's track record and its ongoing financial commitment to the business can tell more me about management than any face-to-face meeting. Read more | more.

I've recommended seven companies so far for Champion Shares. Within my seven choices:

* One boss has been in charge for more than two decades. This boss has compounded his firm's dividend at more than 20% per annum during the last ten years;

* Another boss has been in charge for nearly ten years. He's overseen an dividend improvement of about 15% per annum since his appointment;

* Another three bosses started their companies within the last ten years. Each of these three firms became profitable within two years of formation and profits have improved ever since;

* All seven bosses (alongside fellow directors) own shares worth £10m or more in their company (the average board stake is about £66m), and;

* Five bosses (alongside fellow directors) own almost 10% or more of their company.

In my opinion, there's ample evidence of proven management ability within my Champion Shares recommendations. Shareholders have been rewarded by these managers in the past and I have every confidence they will continue to do well in the future. Certainly the sizeable shareholdings suggest the boards are optimistic about their businesses and their prospects. If you want to join these bosses and prosper from their talents, this 30-day free trial of Champion Shares is for you. The trial reveals all my recommendations and does not cost a penny.