How Netflix Taught Me a Pandora Lesson

NEW YORK (TheStreet) -- I wasn't surprised by Pandora's (P) post-earnings plummet.

As detailed in Monday's Pandora Needs to Fire Its CEO or Hire Somebody to Help Him, the company's go-go growth phase is pretty much behind it. As such, Pandora requires something fresh and new to reignite growth or otherwise keep investors excited. But nobody at Pandora -- from the company's poorly qualified CEO Brian McAndrews to its co-founder and former Chief Strategy Officer Tim Westergren -- seems to want to go there. Read the story at the link for details on that as a I digress and reflect on one of my own realized shortcomings.

This reflection applies to everything from investing to the debate we're having over the potential for Apple (AAPL) (and others) to take down considerable chunks of Microsoft's (MSFT) enterprise business. It's about resisting the emotions that marry you to a position and turn what's best left as a rational undertaking into a seemingly righteous fight.

Don't Marry a Company or Stock Unless They've Granted You Massive, Can't Miss Stock Options

It's really that simple.

If you're one of the filthy rich executives at a company such as Pandora it's easy -- and makes perfect psychological sense -- to fight the good fight. To rally behind your company. To treat the bull versus bear debate as some sort of jihad, crusade or similar struggle. You have picked, or for those waiting for option grants to vest, are about to pick what amounts to free money from a tree. I'd maintain loyalty in the face of reality if a company made me a hundred-thousandaire or, better yet, multi-millionaire. But if you're a retail investor slug or media hack such as myself, you really have no business making an emotional investment one way or the other.

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

Politics Hang Heavy Over FCC's Review of Sinclair-Tribune Media

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone

Cord Cutters Aren't Just Leaving Pay-TV Because of Price

Netflix Shares Could Rise 16% on Big Boost in Subscribers