One guideline in investing is to only invest in businesses you know and understand. What indicates that you know a business well enough to invest in it?
If you don't know anything about a business that's a clear sign to stay away. The opposite side is harder to determine. If you're learning about a company or industry, how would you know you have a sufficient grasp of it? The only way you'd know that you didn't know enough would be by looking back in hindsight after you learned more, which is sort of a retrospective problem.
Submitted November 01, 2018 at 12:05AM by mastermascovich https://ift.tt/2AGnLXx
