Don’t Buy Damaged Companies
An important stock market basics rule for those growth investors is to never buy damaged companies. Although this might seem such an obvious rule, most investors still get confused. Growth investors pick bottom of the barrel companies, analyze them, and then hope they rise steeply. However, it’s important for these investors to know that they should be looking for damaged stocks, not damage companies. If a stock has bad fundamentals, bad management, consistently bad earnings or bad balance sheets; it’s a sign that you have a damaged company. You want to find companies that fell from bad news or had a bad quarter as there problems can be rectified quickly.
March 29th, 2012 at 8:22 pm
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