If you followed Pete to look for gems in the mall, you may like ARO a lot, bought the stock and now the stock is filing Chapter 11. Several lessons to be learned:
1. Peter's preaching does
not work here. It may work before. When too many folks following the
same strategy, it is over-used and does not work any more. Even Cramer
(typo?) did the same mistake by buying Bed, Bath and another B (forgot
the name) documented in his book.
You cannot find
the 'bubble' stocks in the mall: FANG (Facebook, Amazon, Netflix and
Google), many high-tech companies and drug companies. That's why many gurus
including Buffett did not beat S&P 500 (heavy with these 'bubble'
stocks) in the last few years.
2. Buffett did not
own a smart phone and did not use email. Hence, he does not understand
the tech products and do not buy their stocks. He should wear a hat of
investor instead of a hat for his personal consumer products in
investing. If the product is a cancer-saving drug, he would not try to
understand it until he gets cancer. Wrong hat again!
3. When you like a product, the stock may not be a good one. Check fundamentals...