For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital – so investors should be cautious that they’re not throwing good money after bad. In contrast to all that, many investors prefer to focus on companies like Bank of Baroda (NSE:BANKBARODA), which has not only revenues, but also profits. While profit isn’t the sole metric that should be considered when…
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