In this video I explain why it is so important to understanding the business that you are investing in. If you don’t know the business inside and out, there could be some risks associated with the business that you are not fully aware of…and that could be a costly mistake. I give an example of two companies, one that I really understood and one that I didn’t understand or had the capability of understanding. There are so many publicly traded companies out there, so stick with what you know and you will have much more success…and the process will be more fun!