Don’t buy somebody’s problem |
|
Written by Ben
|
|
Tuesday, 10 June 2008 |
|
A company with high gearing and no earnings and still in the red is
somebody’s problem. Don’t make the mistake of making that problem
yours. One
big advantage a retailer has is that he can pick and choose. If
somebody ask you to join him in a business venture, you will have many
questions to ask, such as: what is the business about; how profitable
is it; who is managing it; who are its competitors, what are its
concern; what are its prospective earnings and so on and so forth. When
you buy a stock, did you ask yourself all these questions or did you
buy just on a tip? Amateurs, especially beginners are mostly
consensus-takers. They will go around asking people what to buy. They
will then buy what the majority agrees is a good buy. These people are
going to lose get their pockets cut off, for soon they will find their
money gone and that the majority is usually wrong. The
best advice I can give you is to do your own research. If you don’t
have the time or the interest, better put your money in trust and not
your trust in money.
Happy investing.
|
