Agreed. Just because the company “has a good story” doesn’t mean the business fundamentals are in place.

Along the same lines, buying only because you’ve heard good things about the company or read about them in the local paper. I know a few people that bought Qualcomm because they were a success story at the time and getting good press (and cocktail party buzz) but these people later sold their shares at a loss.

Usually by the time these kinds of stories get filtered down to the “rank and file” level, they are no longer a good deal.

Familiarity might be a starting point, but it doesn’t preclude doing your homework.