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Rekenthaler Report

Greatest Investment Mistakes: Living in the Bubble

Conformity is comfortable--but not necessarily profitable.


Group Think
Today's topic is the fourth and final installment of Greatest Investment Mistakes. The first three were: not knowing when to seek professional help, leaving the stock market without returning, and listening to a single source. This column extends that third subject to being surrounded by those who think similarly.

Writes Bob, "In the late 1990s, I was a sales engineer for a broadband access startup in Northern California. We engineers were given a generous number of stock options--15,000 or even 25,000 with a strike price of $1.15. Our company had an IPO. When the six-month blackout period ended the stock traded at $200. Teams of financial advisors were brought in telling us to not exercise the options, not sell the stock. Sure we were rich, but we should aspire to incredible wealth."

John Rekenthaler has a position in the following securities mentioned above: MORN. Find out about Morningstar’s editorial policies.

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