Investing your hard-earned money is serious business. I don't recommend doing it on a whim, based purely on last Wednesday's water cooler chatter, or because this ticker looks hot on social media sites today.

There is still a time and a place for the occasional no-brainer buy, though.

I mean, I know some stocks so well that it becomes obvious when they are on fire sale for no good reason. I have done my homework for years, analyzing financial data, reading quarterly reports, and listening to management's conference calls. I'm familiar with their histories, their current challenges, and their future opportunities. So when Mr. Market looks at the current situation or recent news and jumps to the wrong conclusion, I'll be ready to take action immediately.

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Source Fool.com