As your father probably always told you, if something seems too good to be true, it probably is too good to be true. In the investing world, everyone is looking for returns to be a pot of gold at the end of the rainbow. Just as such folly can lead to a very large loss of your investment dollars, such blindness can also allow any person or entity not to look long or hard enough at the facts on the ground and engage in an appropriate level of due diligence. Here you can think of H-P and its nearly $8bn write off from its purchase of the U.K entity Autonomy. Closer to home and a with a bit less dollars at risk, are the companies that invested in Outcome Health.
