Overlooked Investing Basics  Page 3 of 3 Initially, it seems
that opportunity abounds because stocks can easily be overvalued
or undervalued. But, before thinking that every stock is
underpriced or overpriced, remember the sheer volume of
activities that position the stock where it is. You may be
smarter than a handful of investors on an individual basis, but
it would be tough to outsmart the entire group.  Larger stocks,
such as Wal-Mart and Coca-Cola, are followed by many people and
analysts. This results in the availability of more information
to more people, which helps them make informed decisions and
helps find a balance in the stock market. In smaller companies,
there may be less coverage or public knowledge, but you may be
in the hornet’s nest with other investors that have a far
superior knowledge than you when it comes to the particular
stock or the industry it is in. New investors get into trouble
when they feel they are smarter than everyone else. Even
professional money managers have problems wit