Never Mind the Guesswork
One of the oldest rules of thumb in investing is that you are buying a stock today not for what the company has done but what it's likely to do. Understanding a company's past performance and overall history can help you develop thoughts on its potential.
It's a tough concept for the average investor to grasp, and it's not made any easier by looking at algebraic expressions online or premade spreadsheets for discounted cash-flow modeling. I have become very skeptical of the typical ways of doing things in investing. The entire manner in which information is fed to us and the lightning-fast time it takes for it to be reflected in a stock's valuation is telling me that I have to continue changing my approach to valuation....626 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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