Originally posted on Financial Post | Business:
In the late 1960s, when Arnold S. Wood was an equity analyst trainee at a large bank in Boston, he walked into an investment committee meeting one day with a recommendation to buy Ford Motor Co. shares. After finishing his presentation, the head of the committee thanked Mr. Wood for his thorough analysis, but said he would not be taking the advice. The reason: His wife recently bought a Ford that was nothing but trouble.
Mr. Wood couldn’t believe his ears. At the time it was widely accepted that investors act rationally when making decisions and, based on his research, Ford’s lemon rate was one of the best in the industry.
“I had done all this work and it put a prick in my balloon,” said Mr. Wood, recalling the incident. “I thought: This is not the way you should make investment decisions.”
But Mr. Wood, now the CEO of…
View original 849 more words