Do Your Investments Suffer from Conflicts of Interests?

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This week’s top forum thread was submitted by Rich.

Rich’s question was:

Supposed that there is a company whose executive is also a top-level employee of the company’s contractor… Would this represent a conflict of interests? From an outside investor’s point of view, would it be a problem? Thoughts?

It’s obvious that conflicts of interest lead to unwanted reactions, especially in rather large corporations. We’ve seen it happen to Enron, MCI, and many others to come.

If you were an investor, how would a potential conflict of interest affect your investment decisions?

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