No. of Recommendations: 2
ZB posted an article about this being the time to buy stocks, and not worry so much about the recent declines. Although I think the article would normally be true, I think we are in an era where normal rules of value investing do not apply. We are dealing with enterprises that fabricate numbers, obfuscate shareholders, and mislead investors for the sake of making a few people wealthy, who take the money and run. We are dealing with accountants and auditors that have either collabrated with the fraud or are so incompetent that their confirmation is not worth the paper is was signed on.

You can be the best security analyst in the world, but its meaningless if the numbers are fabricated. I've now been involved in two such companies, and have been burned both times: ASW and now WCOM/MCI.

Fortunately those are the only two, but it could have easily been others such as Enron, Global Crossing, Tyco, ImClone, Qwest, Adelphia, etc. I suspect that there will be even more scandals uncovered in the near future. I'm left wondering if any investing is wise at all in this environment.
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