I never buy stocks on tips, rumors, or inside information. It simply is an extremely unsound investment practice. Of course, tips, rumors, or inside information seem to be what most people are looking for. But, again, what most people believe and do in the market doesn’t work; so beware!
Certain advisory services and some daily business newspapers carry regular columns fed by Street gossip, rumors, tips, and planted personal opinions or inside information. This, in my opinion, is not the most professional approach, nor is it too sophisticated. There are far sounder and safer methods of investing in the stock market.
– William O’Neil, How To Make Money in Stocks
