Real-Life Decision Making -- Solution
You recommend they sell Top Choice shares.
Because your reputation rides on the stockbrokers' clients making
money, you recommend to the brokers to sell shares of Top Choice.
At first, everyone, including you, is pleased with the decision. The clients
feel like they bailed out before getting hurt too much financially, and they're
grateful for your guidance.
However, sometimes a few years pass before market analysts know whether
the decisions they've made are right or wrong.
As time passes, Top Choice begins to turn itself around. They correct the
problems with the product and things calm down with the managerial staff.
This company, which was once one of the best companies in the world, begins
to rise to power once again. And with each steady jump, your reputation sinks
that much lower.
Your stockbrokers begin questioning your other decisions, and your reputation
is suffering. Some of the firm's clients have pulled their investment
accounts and gone to competing firms.
A year and a half later, stock in Top Choice Electronics has
skyrocketed from $25 to $90 a share.
Maybe you shouldn't have made the decision to sell.