If you ask any CEO
of a failed company why their business went under, they'll probably blame outside factors: the recession, lack of demand, or bad partnerships.
So whether it be to seize your suddenly available dream position or avoid being a
casualty of a failing company, it's important that you be prepared to take action.
There are probably dozens of reasons why businesses bite the dust, but if you look deep enough into the
demise of any failed company, you will usually find a dysfunctional leader who chose to believe what he wanted to believe and ignore facts that were staring him right in the face.
A few non-sports names made it onto the list including CEO Chris Tisi, who owns Slim - Fast, a dieting shake business, and Trevor Drinkwater, a Hollywood producer with ties to Harvey Weinstein through Miramax and the former
head of a failed company that made classical music tapes for babies.
However, for the S&P 500 itself there is no survivorship bias because the list itself changes over time and the index fully reflects the
performance of a failing company up to the point that it is replaced.
Historically, there is a low risk of insurance company insolvencies, with the
number of failed companies being few and insurance businesses that are in trouble being sold to bigger, more stable companies.
Even the holder of a low - rated bond is entitled to a
share of a failing company's assets ahead of preferred or common stockholders.
In a recent intensive study of 101 failed startups, published via Fortune Magazine on why startups fail according to their founders, the # 1 reason most businesses fail is a lack of market need for their product (cited by over 42 %
of the failed companies).
Can we have a minute of silence for those who will foot the bill for Peabody's bankruptcy and the bonusses for the CEO's
of this failed company?
And I hope
all of these failed companies add up the losses created by Lawrence Dale.