Never invest in any idea you can't illustrate with crayon.

This is called 3rd principle of Peter Lynch......What does it mean?

Before investing in any stocks one should ask a question to himself, "Do I know the business of this company, do I understand what are their products and how they sale their product etc?"

If your answer is "Yes" then go ahead and invest in such business else ignore. If you are an IT guy, you better understand Software, so ideally investing in software related company can be your core competency but what happens most of the time you look around and pick real estate, pharma or steel companies, why?

This is because you think you understand the business, but truth is that you don't even know what is the composition of so and so medicine and you buy pharma shares. I would suggest for those investors to spare sometime and try to understand the business well and then plung into the investment mode for such companies.

So, it is advisable to do your home work before investing else stick to your core sector from which you belongs to, there are gem companies everywhere you need to have those "EYES" to identify them.

-HBJ Capital Team.