In our first part of looking for red flags, we touched on issues like management and the balance sheet for signs of corporate ills. This world is plagued with inefficient companies, the good ones are usually expensively priced, and the lousy ones are usually priced so cheap they actually look enticing to investors who aren’t discerning and careful enough. Here are several more red flags to look out for to protect your neck in the investment world and these will be more qualitative than the first part in the red flags series.

Management part deux

Human behaviour is difficult to quantify and looking at numbers won’t give you the full picture of how management behaves. Results can be measured in numbers but it’s the words of the management that sets the tone and direction and their action for its execution. Listen to conference calls or read earnings transcripts of ......