Beyond the Headline: JCP CEO Out - More to the Story

J.C. Penney (JCP) ousted CEO Ron Johnson after less than 2 years into his turnaround plan for the ailing retailer. This is a big story, but there is a bigger story here.

Bill Ackman, the big hedge fund manager, which has been pushing JCP for the last couple of years as one of the best investments in the market is looking worse and worse every day. In July 2012 at a conference the fund manager said that JCP was the only stock he owned that could go up by 20 to 15 times its value in the next 5,6, to 7 years. How did that work out for you Ackman??

He is also the infamous guy that has been shorting Herbalife (HLF) and bashing the company publicly calling it a ponzi scheme. The stock has been holding up even though Ackman believes the company should be trading much lower.

The point here is not to bash Ackman, but to show that even the best of the best make bad calls. Remember Bill Miller the mutual fund manager that had a streak of a decade of gains and beating the market? Well in 2007 his fund lost nearly half its value.

I pick stocks and ETFs for a living and know how difficult it can be. So as an individual investor you need to set realistic goals for your portfolio. Whether doing it yourself or with a paid advisor like myself. Without goals that are attainable or realistic you will continue to chase your tail and never achieve your financial goals.