Tesla Motors Inc (TSLA), salesforce.com, inc. (CRM): When Picking Growth Stocks, Look at the CEO

Obviously, his libertarian beliefs incline him to be opposed to many of things President Obama has enacted, most notably health care reform. In 2009, Mackey wrote an op-ed for the Wall Street Journal attacking Obama’s then-proposed healthcare reforms.

In his piece, Mackey remarked that “the last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system.”

Mackey goes on to propose alternatives to Obama’s plans, proposing things such as tort reform, Medicare reform and changes to the tax code.

More recently, in January, he reiterated his opposition to Obama’s health care policies, labeling them “fascism.” He later retracted his statement to some extent, saying that he regretted using that exact word, but remains as opposed as ever.

Some critics have claimed that Mackey’s Obama opposition hurts his company among liberal consumers. While that’s possible, the evidence doesn’t really support it: shares of Whole Foods are up more than 40% since Mackey’s original WSJ piece — slightly more than competitors Kroger and Safeway.

Investing takeaways

The lesson for investors here is that growth stocks seem to do well when there’s a flamboyant CEO at the helm. Over the longer-term, all three companies have given shareholders solid returns: Since its IPO, Tesla Motors Inc (NASDAQ:TSLA) is up more than 150%; Whole Foods is up better than 200% in the last decade; and salesforce.com, inc. (NYSE:CRM) is up more than 200% in the last five years.

All three companies have pushed radical new business models and have found success. Some of that success may have come from having leaders at the top who aren’t afraid to generate buzz. Without that sort of salesmanship, it’s quite possible that all three businesses could have failed long ago.

Thus, when investors analyze up-and-coming growth stocks, the personality of the CEO might be a truly relevant factor to consider.

The article When Picking Growth Stocks, Look at the CEO originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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