Choose companies that invest in themselves.

Exxon (XOM) gets a lot of criticism for its environmental practices, and it, along with other Big Oil companies, have been getting a lot of heat this week for record profits. But few stockholders complain about XOM’s value or business model. The company routinely brings in profits, and its share price consistently gains over time. And stockholders can rest assured that the bottom line will remain an important part of Exxon mentality, since management has a stake in the company. Here is what CNN Money points out about companies that invest in themselves:

People tend to work harder when their own money is at stake.

That’s why when investing you should look for companies where management owns at least some of the shares.

Exxon management stake isn’t that big — just one percent of outstanding shares — but that’s still a pretty vested interest. And besides, XOM routinely participates in stock buybacks that further help boost the company.

But you don’t have to buy XOM to get those kinds of benefits. There are plenty of other companies out there where management owns some of the stock.

Disclosure: I do not own XOM

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