Fear and greed can lead investors to make poor decisions at the worst possible times. In fact, one of the most difficult aspects of investing is managing those emotions. A classic instance of when greed can rear its ugly head comes with buyout speculation. The allure of quick profits is enticing, but as Brenton Flynn describes in the following video, it's one thing to pursue a buyout -- and another thing finding a buyer.
A better approach
Instead of looking for the elusive buyout, Motley Fool co-founder David Gardner's picks have frequently trounced the market by focusing on a longer time horizon. How? Because he's always on the lookout for revolutionary stocks and recommends them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.