(Image source: flickr.com, fosco lucarelli)
Let's look at Creative Technologies. At one point, it look very promising and had delivered good returns from its soundcard business and its share price peaked at over $50 (this was at quite a high ......When looking at whether we should invest in something, it may be convenient to look at the past trends for the investment or company and make our decision solely on that, believing that the company will continue to perform as it has in the past. Of course, looking at the past is better than looking at nothing at all, but choosing an investment solely on the past performance of a company (such as investing in a blue chip when it is cheap and just believing that it will continue to deliver the results of a blue chip) is probably not the best investment decision that you or I can make.
