Along those same lines, be wary of what you don't understand. If you don't understand a business, you probably won't be able to understand when business is going badly. Biotechnology companies are good examples here. Think of Onyx Pharmaceuticals (Nasdaq: ONXX) -- if you're invested in it, do you have a good grasp of its current and in-the-pipeline treatments for kidney and liver cancer, among other things? How about the pipelines of its key competitors?
pipeline what pipeline this is a one trick pony they only nexavar and they think it is the cure for all the cancers out there...it is laughable...they are testing it on everything if it is effective on one more type of cancer that would be amazing but there is no way in hell this cures or even helps survival rates in all the cancers they are testing it on