Think of it this way: • Why should a bargain exist despite the presence of thousands of investors who stand ready and willing to bid up the price of anything that’s too cheap? • If the return appears so generous in proportion to the risk, might you be overlooking some hidden risk? • Why would the seller of the asset be willing to part with it at a price from which it will give you an excessive return? • Do you really know more about the asset than the seller does? • If it’s such a great proposition, why hasn’t someone else snapped it up?
