How to Avoid Investing in Crooked Companies

Good morning everyone!

James Glassman, host of TechCentralStation and columnist in Kiplinger’s Magazine, has written a really good article about How to Avoid Investing in Crooked Businesses. I highly recommend you read this article. In the article, common sense prevails:

1. Diversify – The more companies you own the less likely you are to be hurt by one individual company. Low cost indexing can be a good way to go.
2. Buy dividends – Earnings are on paper and can be manipulated very easily. However, dividends are real dollars and are therefore less likely to be fake.