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Podcast: My Worst Investment Ever Podcast
Episode: David Kass – Don’t Invest in a Company Unless the CEO Owns a Large Stake
Description: BIO: Dr. David Kass received his Ph.D. in Business Economics from Harvard University and has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management.STORY: In his early 20s, David invested $2,000 in a company giving out high dividends. Only after he invested did he realize that none of the senior executives in the company owned its shares. Soon enough, the stock went down to zero due to accounting fraud.LEARNING: Only invest in a company if senior executives, especially the CEO, own a significant stake. The value...