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Wednesday, September 15, 2010

Why Great companies succeed!

While most of us think Intel is one of the best companies in the world, you might get it wrong. According the Collins, who tracked Intel's share perfromance only beat the Dow Jones Industrial Average by only 2.8 times between 1985 to 2000.

BUT who would have known Walgreens, a company I bet you have never heard of!, actually beat Intel, Coca-Cola, and GE (General Electrics).
If you invested $1 in Walgreens, it would beat a $1 investment in Intel twice the amount, GE by five times, and Coca-Cola by nearly eight times! wow....

So what contributed to the success of such great companies such as Walgreen? well here we go....

Jim Collins, a very well-konwn management publisher, through his book 'Good to Great: why some companies make the leap...and others don't' found that these companies had one combinations others did not, that is:
http://janeheller.mlblogs.com/surprised-face.jpg

Take the right people on the bus, bring the wrong ones down, and put those right people into the right seats,... and they will drive the bus to the destination themselves"

From this we can see that it's not that u can juz get smart people to work with you, it's also vital to get the right people, with the right mindset, and relevant skills....Happy Investing!

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