If you don't understand the basics behind the company and its customers, it's hard to justify the investment. Profitable investments don't usually follow a boom-bust-boom-bust-boom trajectory. Don't rush through the fine printBrent Sheather, a financial advice provider and personal finance/investments writer, points out a good rule of thumb. For investors who can't be bothered reading disclosure statements and/or don't understand them, the longer the disclosure statement, the less attractive the investment/adviser. Avoid trusting dim relativesAs the helpful Mexican proverb goes, “there's nothing more dangerous than an idiot with initiative”.

Source: Stuff August 09, 2021 17:00 UTC