Purchase Solution

This post addresses good companies as good investments.

Not what you're looking for?

Ask Custom Question

A common fallacy in stock market investing is assuming that a good company makes a good investment. Suppose we define a good company as one that has experienced rapid growth in the recent past. Explain the reasons why shares of good companies may or may not turn out to be good investments.

Purchase this Solution

Solution Summary

The solution provides a detailed discussion determining why shares of good companies may or may not turn out to be good investments.

Solution Preview

When a company has experienced rapid growth, their growth is usually incorporated, at least in part, in their current stock price, which allows the stock to be traded at a higher price, because rapid growth has been experienced in the recent past. This keeps the stock price higher ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.