The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments


Subject:  "Invest, Then Investigate" Date:  1/15/2013  11:31 AM
Author:  globalist2013 Number:  34679 of 35593

No doubt you’ve heard the expression, “Invest, Then Investigate”. Supposedly, it is attributed to George Soros. So I went looking on the Web to see what I could find out. Investopedia says of the phrase:

An investment strategy where investors purchase a stock first and do research and due diligence second. 'Invest, then investigate' - or investing first and researching next - is a risky and speculative approach to making investment decisions. This method is often used by individuals who have either an unfounded hunch that a security's price will move in a particular direction, or who are acting on impulse. Any research or due diligence is performed after the position has been opened and the individual decides to either hold or close the position. This is the opposite of the "investigate, then invest" approach to investment decision making.

OTOH, in their next paragraph, they nearly reverse themselves:

Some investors may utilize this strategy to "test the waters" of a trade. If the position is profitable, they can