Strategy, like the rudder on a ship, steers a company through high seas and calm waters alike. Is the business model profitable and growing? How much risk is the company willing to bear? Does the company have the resources -- financially, human, and otherwise -- to execute the strategy?
For investors, the answers to these questions will lead to a long-term darling in the market or to a likely dud. In the video below, Motley Fool contributor Jay Jenkins discusses the strategy behind risk and reward, and points to some case studies in recent history of winners (Blackstone Group (NYSE: BX ) ) and losers (Bank of America (NYSE: BAC ) ).
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