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8/1/08

The value of good due diligence

DYODD*, dude! I say that all the time, and it's the most important thing you can do if you are an investor. Individual or corporate with large or small pockets, it matters not. Knowledge is the basic tool here. It is YOUR money. Trust nobody. Check facts. And believe me, that applies to this humble corner of cyberspace as much as any other.

Two quick examples.

1) Example of bad DD. Can you spot the (not one, but) four factual errors this author makes about Aurelian and Ecuador in the space of just ten lines? I read this today and thought, "Well, he might have some good ideas about other buyout plays, but if he can't get his basic facts straight why bother with him?"

2) Example of good DD. This link shows you exactly why you have have HAVE to take time and read company filings. Good on you Gary for showing the way.

The bottom line: Take advice from the good ones and discard the bad ones, yep for sure we all do that. But trust nobody but yourself. It is your money.


*Do Your Own Due Diligence