Last week’s question and answer

Fred DeLuca and Peter Buck founded me in Connecticut in 1965, and Fred published a book titled “Start Small, Finish Big,” in 2000. Jared has helped me grow, even as he shrank. I was first franchised in 1974, and I can feed you in Russia, Tanzania, China, Saudi Arabia, Austria, Brazil, Israel, Iceland, Jamaica, France and more than 60 other nations. With more than 16,000 units, I recently surpassed McDonald’s as the restaurant chain with the most restaurants. I began running national television commercials in 1999. I’m owned by the private company Doctor’s Associates, so you can’t buy stock in me. Who am I? (Answer: Subway)

Know the answer? Send it to us with Foolish Trivia on the top and you’ll be entered into a drawing for a nifty prize! The address is Motley Fool, Box 19529, Alexandria, Va. 22320-0529. Send questions for Ask the Fool, Dumbest (or Smartest) Investments (up to 100 words), and your Trivia entries to Fool@fool.com.

The exodus of Exodus Communications

In April 2001, I read about the great investment opportunity we all had with Exodus Communications, based on analysts’ reports. I plunked down $7,000 for 600-some shares. Now my original $7,000 is worth $700. Not only that, but there are several class-action lawsuits in the works against Exodus and questions about whether it violated SEC regulations or reported false information. I know I can kiss my $7,000 goodbye … and maybe an irate wife who is saying: “I told you so.” H.J., Richmond, Va.

The Fool Responds: We hope your wife stuck around, realizing that all investors make mistakes on occasion. The key is to learn from mistakes and not repeat them. You would have done well to sell and take your $700 when you wrote us some time ago, as your shares would be worth around $10, in total, today. The company has filed for bankruptcy protection.

Be careful with analyst reports. Many analysts, plagued by conflicts of interest, have waxed rosy about companies with poor prospects in order to not offend the firms and perhaps to win some investment banking business from them.