Thursday, July 1, 2010

How Institutional Investors Think


High priorities for institutional investors in selecting stocks for their investment portfolios:

  • Price/earnings ratio, current and projected earnings, and management competence. 
  • Least Important: Product quality, the state of the US economy, and the industry group. 
  • Middle ranking: Balance sheet, price per share, and long-term earnings record.

*Source: Investor Relations Update, 1730 M St., NW, Washington, DC 20036