I beg to differ on the last one - http://www.fool.com/investing/small-cap/2007/12/27/2-ways-to-profit-from-the-drop.aspx?source=ihptcltpa0000001
Excerpt:
Get rich or die tryin'
We all make investing mistakes. The key is not to make them again.
We've been dealing with this at our Motley Fool Hidden Gems small-cap investing service. Small caps have been among the hardest hit by the recent market swoon, and Fool co-founder Tom Gardner is coming to terms with what he called "one of the worst stocks I've ever recommended."
That stock is mattress-maker Select Comfort, and despite having a quality product, management has been slow to learn from its marketing mistakes and adapt to declining demand. That's putting it mildly for a stock that's down nearly 60% year to date, but in Tom's opinion, the problem is at the top.
Lose and learn
Tom's autopsy of this recommendation has yielded a four-point checklist that should help make us all better investors:
- Make sure the CEO at your companies has been pursuing mastery in a relevant industry for more than a decade and demonstrates daily passion for the business.
- Make sure the company is taking bold steps that match up with your beliefs about the company's potential. If you come to believe you can do a better job of running the company than its leadership, it's time to sell.
- Make sure your company has leadership that in every way demonstrates partnership with each of the constituents of its business -- customer, employee, and, perhaps most important, shareholder.
- Make sure you have a diversified portfolio to fall back on if you turn out to be wrong.
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