Jim Cramer's Investing Rule 19: When the Chiefs Retreat, So Should You

Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has found that when someone in the C-Suite resigns, you should consider selling the stock. So watch Rule #19 of his 25 Investing Rules now!
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Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has learned a lot over his 30+ years of investing. So he created a list of 25 Rules for Investing that can help you avoid the novice pitfalls that even he fell into on occasion.

So start paying attention to the C-Suite.

Rule 19: When the Chiefs Retreat, So Should You

"One of my favorite rules is that when you see unexplained resignations by execs --you should presume something is wrong and do some selling," says Cramer.

Because these jobs are hard to come by so most often, CEOs don't quit for personal reasons.  Remember, if they do, they often lose their bonuses.

"Competition is so fierce for these positions that when you finally land one, you don't up and leave. You leave because something's wrong at the company," he says.

Granted there are occasions when people leave for personal reasons, but watch Rule #19 now as Cramer explains why he still sticks to his rule.

Sign up and watch Jim Cramer's 25 Rules For Investing here!

And for more Investing Rules, watch these: