
One recent example of shareholders, or one particular shareholder, confronting the CEO of a major corporation occurred at the Ford annual meeting where Sam Joanette challenged the ability of CEO Bill Ford Jr. to run the company. Joanette said Ford was “in over his head.”
But the little guy confronting the evil corporate titan is not the point of this story. The point here is that people who live in glass houses shouldn’t throw stones. You see Mr. Joanette was upset because he’s lost over a million dollars in Ford stock since 1999. I’d be upset too but he really ought to direct that anger at the proper source, himself.
You see when Mr. Joanette retired from Ford he put most of his retirement savings into Ford stock. Now there’s an example of a loyal but, I dare say, stupid employee. Mr. Ford might very well be in over his head but Mr. Joanette was certainly out of his league when he decided to invest a large retirement nest egg in one stock. So much for diversification.
I think making money in the stock market is difficult but it is almost impossible when there are people like Mr. Joanette out there doing dumb things.