Wednesday, April 25, 2007

The Big House

Investors looking for stock-picking tips might find the answer right at home—not their own, but where chief executives live.

A new study makes the case that there is a strong correlation between executives’ home buying behavior and stock performance. The bigger the CEO home, the worse the company’s stock fares, according to two academic researchers. They also found that companies with CEOs living in more modest abodes often see their shares outperform.

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