It’s easy to see why investors are attracted to unprofitable companies. Amazon.com, for example, posted losses for many years after its IPO, but if you had bought and held the stock since 1999, you would have made a fortune. But while history celebrates these rare successes, the failures are often forgotten. Who remembers Pets.com? The […]
It’s easy to see why investors are attracted to unprofitable companies. Biotechnology and mining companies, for example, often lose money for years before they succeed with a new treatment or mineral discovery. But while the successes are well known, investors shouldn’t ignore the many unprofitable companies that simply burn through all their cash and go […]
Just because a company isn’t making money doesn’t mean the stock will fall. For example, although software-as-a-service company Salesforce.com lost money for years while growing its recurring revenue, if you had held shares since 2005 you would have done very well indeed. Still, only a fool would ignore the risk that a loss-making company will […]
Just because a company isn’t making money doesn’t mean the stock will fall. For example, although Amazon.com was loss-making for many years after it went public, if you had bought and held the stock since 1999, you would have made a fortune. The harsh reality, however, is that a great many loss-making companies burn through […]
Just because a company isn’t making money doesn’t mean the stock will fall. For example, although Amazon.com was loss-making for many years after it went public, if you had bought and held the stock since 1999, you would have made a fortune. The harsh reality, however, is that a great many loss-making companies burn through […]
