During their baby phase, investors are totally in love with them. The newborn is absolutely perfect and the stockholders will coo and brag, and throw money at their pride and joy regardless of price. During the toddler phase, although the company may display poor behavior in not doing what it’s told and destroying everything in its path, including shareholder wealth, investors are still convinced they’ve got a real long-term winner. They forgive and shrug this phase off as just a part of growing up. As the company hits the elementary and middle school years, investors are still… Read More
During their baby phase, investors are totally in love with them. The newborn is absolutely perfect and the stockholders will coo and brag, and throw money at their pride and joy regardless of price. During the toddler phase, although the company may display poor behavior in not doing what it’s told and destroying everything in its path, including shareholder wealth, investors are still convinced they’ve got a real long-term winner. They forgive and shrug this phase off as just a part of growing up. As the company hits the elementary and middle school years, investors are still supportive — although not as forgiving as in the toddler years. Poor performance doesn’t go unpunished and the severity increases as the years progress. By the tumultuous high school and slacker college years, investors, like parents, often throw up their hands in frustration. The stock apparently can’t figure out what it wants to be or which direction its going. Sometimes, after this turbulent period, something wonderful often happens, but unfortunately many investors have lost patience and miss the metamorphosis. By this time, the company has grown into a mature, consistent, responsible adult. Giant chip maker Intel (Nasdaq:… Read More