In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "I bought 500 shares of AAMRQ (UNKNOWN: AAMRQ.DL ) approximately three months ago. Will I recover any additional shares over the next four months or should I be writing this under the 'Dumbest Investment I've ever Made'?"
Investing in special situations and bankruptcies is just plain tough to do. It's not impossible, of course, but investors need to approach these types of things with the utmost skepticism. Think about the risk/reward ratio, and whether it's something you're comfortable with. And further, go ahead and accept the fact that there are plenty of people out there who know more about the situation than you do. The deck is not usually stacked in the individual investor's favor.
So what's the right way for individual investors to invest?
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.