Mundy's Moment: Avon calling

A client recently inquired why we still hold Avon Products considering the terrible time the company and its shareholders have experienced.

Defending unsuccessful stock picks is standard practice for contrarian investors, as failures are often viewed as having been blindingly obvious to most observers. Avon is no exception, with a litany of problems, as recently articulated by the new chief exec, reaching a frightening length. Most notably, a lack of focus on customer representatives and core customers, leading to poor execution, products unsuitable for the customer base, unattractive representative compensation and poorly aligned incentives. In addition, a lack of investment in technology and service, high cost growth...