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Posted On: 03/28/2021 9:01:14 AM
Post# of 7802
Due diligence or DD for short is defined by investopedia as...
"an investigation of a potential investment (such as a stock) or product to confirm all facts. ... For individual investors, doing due diligence on a potential stock investment is voluntary, but recommended."
My take aways from this are 1) It's for "individual investors" to do on their own (voluntary), not necessarily for others to do for you. If someone is doing "DD" for the individual investor unsolicited and it's spun as negative information 99% of the time, that could be a "red flag". And on the flip side...
2. Don't invest just because someone tells you to. Investigate all positive claims as well as negative ones. Constant sunshine pumping could also be a "red flag". Consider the source, someone who buys and holds stock in a particular company as opposed someone who consistently buys and then sells theirs might be better trusted.
As we all know, stocks are very risky and the investment in them is your responsibility not someone else's.
"an investigation of a potential investment (such as a stock) or product to confirm all facts. ... For individual investors, doing due diligence on a potential stock investment is voluntary, but recommended."
My take aways from this are 1) It's for "individual investors" to do on their own (voluntary), not necessarily for others to do for you. If someone is doing "DD" for the individual investor unsolicited and it's spun as negative information 99% of the time, that could be a "red flag". And on the flip side...
2. Don't invest just because someone tells you to. Investigate all positive claims as well as negative ones. Constant sunshine pumping could also be a "red flag". Consider the source, someone who buys and holds stock in a particular company as opposed someone who consistently buys and then sells theirs might be better trusted.
As we all know, stocks are very risky and the investment in them is your responsibility not someone else's.
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