Problems Don’t Age Well
Many of us subscribe to the “cockroach theory,” the idea that earnings shortfalls and other problems are like cockroaches: there’s never just one. As a result, stocks commonly sell off more than an earnings miss seemingly warrants. The cockroach theory works because business executives rarely take the vigorous steps necessary to ensure that bad news reaches them. All too often, problems get stuck in the … [ Read more ]
Author: Anne-Marie Fink | Source: “Beyond Buy or Sell: What a Business Leader Really Can Learn from an Analyst Report” | Original Publication: Ivey Business Journal | Subjects: Management, Organizational Behavior