There was once a wise man who started a semiconductor company. He understood the industry, and surrounded himself with the best people in his area. They made superior products which could always find markets at good margins.
But the wise man became assailed by fools (a.k.a. Wall Street analysts) who told him: 'Don't make superior products at high margins, make commodity products for the fastest growing markets and sell them at smaller margins to get higher growth'.
The wise man refused, and the fools all said: 'We won't recommend your shares.' Nor did they, and the wise man's share price stayed the same for many years.
But, as the wise man knew, the companies which followed the fools' advice, and made commodity products at low margins, found themselves in pissing matches with all the other companies who had followed the fools' advice and had also made commodity products at low margins, until all the companies were producing more and more for less and less return.
And the companies which followed the fools' advice saw their shares go down, and down and down.
MORAL: Stick To Your Knitting.
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