Houses and Stocks

A recent study shows the correlation between a CEO buying an expensive house and the company doing poorly:

Then the professors examined the returns of the CEOs' stocks, and discovered that the bigger the home, the worse the stock performed. In 2005, the stocks of companies whose CEOs lived in larger homes (i.e., above the average for all CEOs) returned, on average, 3.35 percent less than companies whose CEOs lived in below-average homes. And the CEOs who lived in the biggest homes (at least 10,000 square feet or over 10 acres) underperformed their peers who inhabited more modest homes by 6.9 percent, on average.

Now read the news about Google CEO Eric Schmidt's plans to buy an expensive apartment in NYC.