The latest issue of a national weekly newspaper recently arrived in my mailbox with the cover story: “The World’s Most Admired CEO’s.” The headline prompted me to recall a recent study suggesting that nearly 90% of common stock investors will make their investment decisions based solely on their perceived abilities of a company’s CEO.
This begs the question: “Can we put too much confidence in our own intuition or the wisdom of just one person, one expert, or one consultant when we make business decisions?”
Individual decisions are largely based on a limited scope of information. No matter how smart an individual is, they are likely to make erroneous business decisions at some point. The greater the volume of decisions one makes, the greater the probability that one will make miserable decisions. Read the rest of this entry »