Beyond a point, extra analysis yields diminishing returns. Sure knowing the core aspects of a business’s financial health, earnings, cash flows, debt levels etc is crucial, but we need to mindful of our own analysis-paralysis zone.
The market environment and external factors can change rapidly. An overemphasis on historical data without considering the future prospects can lead to misguided decisions.
Finally it is all about the time that one has. Spending excessive time on analysis of one investment opportunity can lead to missed opportunities elsewhere.
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