Monthly Archives: July 2015

When to Cash in Winning Investments

Excellent article last week in Lifetime Income Report (7/23/15, on how to evaluate when to get out of an investment that’s making money. Many investors hang on to long and end up giving back some or all of their gains.

How do you know “when” it is right time to sell?

You’ve made an investment. It’s shot up quickly. Oh crap, is it getting overpriced and ready for a downward adjustment? Or has the rally got more legs to run?

KEY: How much is the investment worth now? How much are you getting paid to hold it?

Warning signs: Are analysts getting pessimistic about future earning (real analysts, not talking heads on TV.) Is investment getting pricey historically? Dividends just average?

When you meet your “exit price.”  What’s an “exit price”? The day smart investors buy an investment, they set the price at which they plan on selling. The “exit price” that meet their objectives. Smart investors have a plan when they “buy” on how they expect the investment to perform. They stick to that plan.

The rest of investors? Everyone buys with the expectation the price will rise. Majority of investors fail to evaluate their investments using the keys above. Nor are they watching Warning signs. Therefore they don’t know when to sell.

What not to do

Lifetime Income Report pointed out that investments are nothing more than a piece of paper we trade. Don’t become attached to specific company or position. As soon as you do you will likely make mistakes and lose money. (If your gain has dropped from 50% to 25% you’ve still lost 25%.)

Never lose your objectivity. If investment has one or more of the warning signs above, set your exit price.

Common Mistakes When Recruiting and Hiring

What are head hunters hearing from candidates?

There is no sense applying to jobs at (fill in name of employer) because they:

  • Never respond
  • They respond quickly, and then it’s weeks before they get back to us, if ever.
  • We get contacted about another job, usually at lower salary or in area with higher cost of living.

There are two types of management candidates. Job seekers and career seekers. Most employers want candidates who are looking for long time career with same company. Most of those same employers end up attracting job seekers. Why? Process most employers use with candidates is unprofessional.

Employers are hurting the reputation of their companies. Candidates talk among themselves and share their experiences about different companies they have applied to. Many candidates identify specific companies they would never work for. Invariably because they had bad experience with that prospective employer. Do you really need career seekers bad mouthing your company?

Is Your Company Doing Any of the Following?  (We sure hope not.)

  • Employment ads that fail to identify the “real” required skills.
  • Employment ads that are nothing more than position descriptions. Come on!  Have you ever read a position description that didn’t put you to sleep? Position descriptions were never intended for employment advertising.
  • Employment ads that don’t include salary range. Or responding back to candidates with much lower salary than that posted. To candidates, that’s classic “bait and switch.”
  • Employers who don’t have the courtesy to ever contact candidates after the initial electronic email that says employer received resume, blah, blah, blah. Daily, we hear candidates blister hotels and management companies about their lack of professionalism. Create canned candidate letters that say something. It only takes few seconds to send candidates a real letter. Candidates expect “canned” response emails…but they expect the emails to be more than an insult to their intelligence.
  • Application forms that take more than 20 minutes to complete.
  • Failing to notify all candidates when the job has been filled.
  • Contacting candidates about another job opening (usually at much lower salary.) Identifying other opportunities to candidates is great. BUT, include why you are suggesting this position to them, especially when the new job pays less than the old one.

How Do You Know What Candidates Are Saying About You?

  • Use a simple survey. Send it to all candidates that applied. Survey only needs to be 3-5 questions. Just the fact that you do a survey will benefit your hotel and company.
  • Call candidates you have interviewed and ask them for their impressions of your hotel, company, and your recruiting process. These are your best candidates. Their opinions will help your future recruiting and hiring.

The demand for qualified candidates is getting really intense. Salary demands are increasing a lot from best candidates. Are you ready to compete?