Fire Your Stock Analyst!: Analyzing Stocks on Your Own

Summary

Professionals always evaluate the risks intrinsic to a prospective stock purchase, and you should too. Be wary of investing in overvalued markets or in downtrending markets or sectors. There are thousands to choose from, so disqualify stocks with product allocation, litigation, earnings restatement, sector outlook, financial health, or creative accounting risks. The existence of any of the less serious risk factors makes a stock less desirable, so in terms of risk, “less is more.”