Friday, March 12, 2010

Haiku - Research

Whether you're a virgin amateur or a lifelong career analyst, the importance of doing equity research can never be overemphasized enough. Research cannot entirely eliminate bad investment decisions, but by investigating a company's financials and prospects you can certainly reduce the probability that you will lose money.
Beyond that, don't take someone else's word for it. You can't pawn someone else's work as your own. Never bite on whisper stocks.
With this in mind, a haiku:

Profit from research:
dig into the financials
call the company.