One trait of great stocks is the proper handling of CEO succession.
It’s never easy taking over as the new CEO no matter how prepared you think you are. Thankfully, for investors’ sake, most corporations carefully plan their CEO succession.
For instance, Ford (F) announced in early May that Alan Mulally would step down as CEO on July 1 to be replaced by Mark Fields, its boss for the Americas. The appointment of a new CEO had been in the works for some time.
In 2013, more than 70% of the CEO changes that took place were planned and deliberate, just like the situation at Ford.
Great stocks leave nothing to chance, and that’s why you see what you’re seeing at these three companies that have installed new CEOs in the past year who are taking care of business despite a steep learning curve.