A.I.M. Users Bulletin Board

[Conrad]

Hi ET,

I would say that this happens all the time. Some people sell a on old painting on the flea market and then they see on TV that is was worth 1000 grand. Some people get inside information and think it is a red herring and forget about it.
Some people think that a company that is not operating properly and is losing money has no potential while in fact it may be a gold mine. If you want to get out of that predictment then you have to read 3...or more... Financial Reports per day and then you can pick the Gems...if you can read such reports.
That's the way Waren Buffet does it. It's very simple, but understanding such reports may not be simple.

Of course, cutting risks in an invesment is the key to good investing, but this not automatically mean that if a stock price is high that it is risky to have shares in it. Often it is just the opposite...the stock price may be high because they are not risky at all! Keeping them and buying more of them all te time can pan out quite well.