Where it all went wrong, for companies and investors

Comparing growth oriented computer memory company Micron to rail network CSK, Stephen Dodson demonstrates unit growth ' investment growth
In 2010 Micron sold exponentially more computer memory than it did in 2000, but the price per byte was exponentially lower. Locked in expensive competition the company's earnings in 2010 were 28% lower than in 2000. Contracting CSX transported 13% fewer railcars in 2010 than it did in 2000 but because it only has one competitor it increased revenue per car 5% a year and earnings by over 800%. Maybe choosing different dates might affect the outcome, but I get the gist: sales growth can be overrated.

My favourite type of blog post. Geoff Gannon examines the anatomy of a screw-up: Barnes & Noble
More of a screw-up in terms of opportunity cost, with his time and money tied up in Barnes & Noble, an investment that went nowhere, he missed out on better opportunities. Why? He ignored the company's Kindle alternative, the Nook, and he ignored the ego of management bent on growth in market share at all costs. Enamoured by the profits its declining stores still churned out, he failed to realise the money would be sunk in the loss-making Nook.

Paul Constant floridly catalogues the decline of book store chain Borders
Former bookseller recounts how displays bought and paid for by publishers replaced those conceived by staff, mediocre crap (kitchen magnets and board games) were piled on every flat surface, and diversity dwindled as headquarters sent ever larger shipments of diet books and thrillers to employees who cared less and less about books. Borders outsourced its online bookstore to Amazon ('the exact second Borders died') and expanded recklessly overseas. Staff were encouraged to sell reward cards even though the company would not survive long enough for customers to use them and liquidators closed the toilets and removed all the chairs, depriving hobos of sanctuary.