Legendary fund manager Peter Lynch said that you shouldn't invest in any idea you couldn't illustrate with a crayon. I'm not much for crayons, but I do love the pithiness of that line. It's something we regularly preach at the Fool: Don't buy what you don't understand. And if you can't simply sketch out a company's business model -- how it, you know, actually makes money -- then maybe you shouldn't be investing in it.
In researching a series of articles, I've had the enviable opportunity to hold lengthy discussions with 34 of the Fool's analysts and advisors over the past two months, learning the companies they like and why. Stepping back and analyzing three notepads full of strategy, numbers, and logic, I've gleaned two key takeaways. Over the course of this article, I'll share those and the one company I plan to buy as a result of their insights.
This article is part of our Rising Star Portfolios Series. Most investors don't keep tabs on their companies' fundamental value. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.
There's no foolproof way to know the future for Digital Riveror any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result. Rest assured: Even if you're not monitoring these metrics, short-sellers are.
Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical giant Bristol-Myers Squibbhas earned a respected four-star ranking.
A memory technology that could enable a handheld device like an MP3 player to store about 3,500 movies or 500,000 songs is a step closer to commercial viability, researchers at IBMsay.
Microsofthas warned users of an Internet Explorer bug that could allow hackers to take control of unprotected computers. The company said it is still working on a permanent solution to debug IE, although it has released a workaround.