Tuesday, July 20, 2010

Whole Foods’ stock can leave sour taste in investors’ mouths

"Legendary investor Peter Lynch, in his many investment speeches and books, always encouraged people to “buy what you know.” His reputation was built on the idea that he would go to a shopping mall, see a lot of activity or spot some new trend at a store, and come home with a new investment in the bag.

If only it was that easy. Lynch, of course, came home to a team of analysts, and the potential to meet with management and gauge their abilities firsthand and more. All the average person comes home with is some good will for the store and a bag full of anything from groceries to luxury items."

Read the article