Biggest Investor Mistakes: iPonzi, Anyone?

By Ben Steverman - 2011-09-13T22:48:05Z

Jen Fong

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Being Sentimental

Kevin Sanderford's client served on the board of a public company and had serious concerns about its chief executive. He didn't like the way the CEO was leading the company, and he worried about fraud, so he resigned. Sanderford, in Montrose, Colo., said his client's assets were far too concentrated in the company's stock and urged him to get out of it. The client sold 700,000 shares but kept 600,000. The client had an "emotional attachment" to the company and thought shares were undervalued, Sanderford says. Those 600,000 shares, once valued at about $2 million, became worthless when the company went bankrupt.