How to spot a Turkey

The Wall Street journal proposes an interesting concept regarding turkeys. Not the birds, but clunker stocks.

The bottom line (for those of you too lazy to read through the article): Don't buy stock in companies that aren't doing well, because "...it's a lot easier to spot a turkey than an eagle."

I read this article and felt instantly enlightened and rejuvenated about the concept on investing. Such a simple thing to do, don't put money into things that aren't profitable. [I haven't bought anything at Pier1 Imports in 10 years... chances are no one else has either... hence it's not that surprising to hear that they're going out of business.] The great part is that this article is really helpful, the shocking part is that people have to be reminded of "common" sense. When did risk become such a trend, if the sure thing is what pays off??

The world is still chasing the glimmer of hope in striking it big, when they could be earning just as much with much less effort/ingenuity playing the safe cards. As if we're playing poker and they're all waiting for that royal flush, when all you need is a pair of 9s to win that hand. If you don't get the pieces you need, then its better to just play what's in your hand. It's like they're all 49ers still in the stream beds looking for gold...

It's just common sense.

Very few of us will ever strike it rich with an ingenious investment or clever invention... therefore time is better spent playing it safe. At least when it comes to money... :)

Literally and actually calculating risk.