Mark Skousen

Although “Good Profit” is primarily a guide for business owners and entrepreneurs, his book does offer advice for investors. Koch warns against overconfidence in making predictions, relying too much on experts and counting “sunk costs” based on past decisions (thinking “I’ll stay with this bad investment until it turns around and I get my money back”). According to Koch, investors should beware of “confusing random events with patterns that are really unpredictable.” Technical or charting analysis can lead you astray when they go contrary to sound fundamentals about a company.

Mark Skousen