Monday, September 19, 2011

Choose the big solid ship

Those companies that promise you the moon, they not only dream big, but dream too big, the companies' size do not match their dream, too small. You better sell faster at whatever cost. Those companies most probably borrow too much to fulfill their dream. They will be easily being caught up when economy is down for a considerate period of time. Less business, less cash flow but still have to pay down debt. When interest rate increase, they prepare to go bankrupt.

Choose company that have cash, low leverage, conservative and solid business. Those companies are big solid ship that can weather whatever big turbulence, big chance that they come out stronger.

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