Earlier this year, I came across a stock with some unbelievable numbers. Revenue was up more than 40% per year for the past three years. Income had nearly doubled over that same time. Return on equity was close to 30%, and net margins were in the double digits. Its name? Parlux Fragrances (NASDAQ:PARL).

Based on what I knew -- which wasn't much -- I gave it a lot of consideration, but did I pull the trigger? First let me say that even thinking about making an investment without weeks of research is alien to me. I come from a value-focused hedge fund. We had all day to analyze stocks, and we used it, often burning the midnight oil. Hedge funds have a reputation as the gunslingers of the market, but I assure you mine was anything but. We held just a handful of stocks, and we knew them cold. But staying abreast of them -- and finding new ones -- took a lot of time. That kind of thoroughness is what The Motley Fool is all about. When it comes to burning the midnight oil, David and Tom Gardner -- Motley Fool co-founders and lead analysts of the Motley Fool Stock Advisor newsletter -- could give the hedge-fund crowd a run for its collective money.

Hidden risks
No, I didn't buy Parlux. And I'm glad I didn't, considering the company has dropped more than 50% since that time because of some questionable moves by management and a failure to file its 10-K on time that a cursory browse on Yahoo! Finance wouldn't have revealed beforehand. But I'm not really here to criticize Parlux; it could still rebound.

Regardless of the stock, risk exists. And with any investment it's important to know what you're betting on. No screen or quick peekaboo would have clued you in to the fact that companies as diverse as Applied Micro Circuits (NASDAQ:AMCC), UnitedHealth Group (NYSE:UNH), Apollo Group (NASDAQ:APOL), and The Cheesecake Factory (NASDAQ:CAKE) would be forced to review their financials because of questionable stock option grants. You also won't find out in a jiffy why insiders at Akamai (NASDAQ:AKAM) and Navteq (NYSE:NVT) have been selling lately -- and whether or not it means anything.

Having the time to do some diligent digging is crucial in avoiding potential blowups.

The "Are you kidding me?" formula
Years ago, I read a book about theories underlying accounting and financial statements. There were plenty of pages on a common solvency formula: earnings available to pay fixed charges divided by those fixed charges. Via several chapters of buildup, it replaced the simple version with a "corrected" formula that made numerous tweaks to the numerator and denominator. Was it right? Yes -- it eliminated a lot of flaws in the raw accounting numbers. But that accuracy came at the expense of a formula so complex that individual investors would need days to calculate it.

Lack of time tends to pull investors in one of two ways. The first: making futile grasps in a blizzard of information overload. The second: tunnel vision toward stocks you've already researched. Either of these can burn you.

Having time troubles with your investing?
If so, then the best investment you can make is one in your time management. And I've got ideas for you. The first is simple: Develop screens and hone your criteria for investments. With 10,000 stocks and a day job, you absolutely have to develop efficient methods for cutting to the ones you're likely to bite on. Second, spread the load among trusted compatriots. Start an investing club with like-minded investor friends.

If you're still pressed for time, consider a free trial to Motley Fool Stock Advisor. The harried will like that two stock recommendations come floating their way every month, while the detail-oriented will appreciate the investment theses -- complete with counterpoints -- given for each selection. To date, David and Tom's picks are beating the market by nearly 32 percentage points. Hands-on or hands-off, it's your choice. And you're never far from an investing club of sorts, since Stock Advisor membership comes with access to exclusive discussion boards where members share opinions and insights -- and ask questions -- without the plague of profane and inane comments typical of boards elsewhere.

Take a few moments to think about how time has affected your investing. If the answer is "negatively," consider letting the Stock Advisor team help you get a better handle on your future. Investing is a critically important task -- one that shouldn't get neglected as often as it does.

Today's a great day to claim your free 30-day trial subscription to Stock Advisor -- David and Tom released their two brand-new picks just yesterday. To take a look,simplyclick right here for a free trial.

This article was originally published Feb. 23, 2005. It has been updated.

James Early does not own any of the stocks discussed in this article. UnitedHealth is a Stock Advisor and Inside Value recommendation. Navteq is a Stock Advisor pick. Akamai is a Rule Breakers pick. The Motley Fool has adisclosure policy.