Humm, I don't know. In theory what he says makes sense. But in practice he assumes that the average investor is capable of determining the health of a stock on their own. Without insider info how do you really determine that a particular company is being well managed. A well run company can on paper look the same as one being stripped of its assets to provide more short term profit.
You might as well go with the Motley Fool advice and just go after Blue chips. In the long run they make money too, with little or no work on the investors part.
Humm,
ReplyDeleteI don't know. In theory what he says makes sense. But in practice he assumes that the average investor is capable of determining the health of a stock on their own. Without insider info how do you really determine that a particular company is being well managed. A well run company can on paper look the same as one being stripped of its assets to provide more short term profit.
You might as well go with the Motley Fool advice and just go after Blue chips. In the long run they make money too, with little or no work on the investors part.