It is pretty hard to pick a good stock: You need to find competent management, a good business, a competitive advantage, a good balance sheet, a low valuation, a good growth profile and solid cash flow, among dozens and dozens of other subjective and quantitative factors.

What’s more, even when you find a good company, you need other investors to like it and push the price up, or you still won’t make any money.  Read More…


  1. Been down this road way too many times to count. I was laughing my arse off reading this list because it took me back to experiences. Fun read. Thank you.

  2. As the article points out the key is to focus on quality product and improve revenues/profits. Everything else will take care of itself.

  3. Fortunately for me i have not been in this situation. It’s more likely that i have not invested enough to see any of this.

  4. Too many press releases is what really ticks me. I had a stock i wont name and every 1 hour on the hour i would receive a new press release in my email. And sure if it was of some itnerest but it was more like the CEO took a walk outside kind of news. Oh come on guys. Only issue out news that is key to us as investors. Everything else is unnecessary.

  5. Never understood the value of hiring investor relations (IR) firms. Just a money grab and you know it is when the first thing on their mind is the percentage of options in your business. 🙁

  6. As a small business it is really hard not to fall itno some of these points because when you try to grow you really need to play ball and do what others are doing to survive. Fact of life.

  7. These cardinal rules should be in a rule book on how to start a business and even handed to mid-cap institutions as well.

  8. As a small business owner i’d just like to get to a point that we aren’t living month to month and focusing more about growing our stock prices 🙁

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