Fashions and Fads Are Skilled Masters of Enthusiasm

Fashions and Fads Are Skilled Masters of Enthusiasm

Remember how excited investors were about Iomega? Taser? Crocs? Every one of these stocks had a huge bull run, as sales and earnings expanded and investors' expectations of the future were ratcheted higher and higher. And every one of these stocks collapsed when investors realized their projections were overly optimistic, and that these fads, like others, would pass. The best growth stock investors are happy to ride the wave of fashion as it is building, but they're quick to exit when a stock falters, knowing that enthusiasm can cool quickly.

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