Don’t Believe Everything You Read: Ebix Inc (EBIX), Boulder Brands Inc (BDBD)

Stop taking everything you read at face value!

I’m not going to examine these articles and tell you if they are correct. Rather, I’m just going to point out how ridiculous that someone can write an anonymous post on the internet, offer almost no new information, and cause the stock to spiral down 25% or more. Ben Graham, in his book “The Intelligent Investor” talks of how you shouldn’t let the authors personification of market sentiment, “Mr. Market,” dictate the value of companies you own. I would argue that you should also not let a single, often anonymous, short selling author with a pretty report tell you how to value your companies either. Particularly when major, competent, and trustworthy companies who follow these securities have failed to find any wrongdoing. Often times, such as in the LINE article, the panic generated by these articles can be excellent buying opportunities.

The article Don’t Believe Everything You Read originally appeared on Fool.com and is written by Shaun Geer

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