What are some tactics that good financial managers employ?

Expert Answers
readerofbooks eNotes educator| Certified Educator

That is a good question, especially in this down market. Here are some strategies that managers use. First, there is the idea of diversification. In short, you do not want all your eggs in one basket. So, you spread out your money. This acts as a natural hedge. Second, many funds are value based. The basic strategy is to buy low and sell high. Warren Buffet is know for this. This strategy requires patience and the ability to hold a stock for a long time. Third, there is also the strategy of anticipating future trends. For example, if a person think that there will be great inflation, you probably want to be in commodities.

krishna-agrawala | Student

Financial Managers is a very general terms. Persons designated s finance managers in different firms may perform many different kind of jobs. For example a finance manager in a share broking firm, a foreign exchange dealer, and a manufacturing firms are likely to to have very different kind of duties and responsibilities. Further, the same finance manager is likely to be responsible for a wide ranging activities, and the way one function needs to be handled may be quite different from the others. For example, a finance manager may be responsible for advising the firm on sources of short term finance requirement, as well as for planning and monitoring the fund flows. It is not advisable to handle all such function in identical manner . Finally, tactics refers to a specific actions one may take to achieve the detailed operational objectives that change from time to time. Thus the tactics also need to change with the changing operational requirements. It will be a good strategy for a financial manager, or for any other manager, to be flexible and innovative in use of tactic, rather than relying on some standard, prescription tactics.