This is where it gets difficult for beginner investors. They're looking for that sure thing, and there are no sure things in life. There's just probabilities. It's a tough lesson all investors have to learn and sometimes it can be a cruel lesson. This is why I start with small investments and then build on those positions over time with the sale of options and the technique of dividend reinvestment. It takes longer to get rich that way but it increases the probability that you'll eventually get rich.
So if I have the option of buying shares in a company that's made money consistently over a period of years rather than over only one or two years, I'd invest in the longer pattern of success. My reason for doing this is I believe I'm actually investing in a management team that's developing, designing, and selling a product or brand. I like management teams that consistently make good decisions over a significant period of time. And the longer the better.
I believe that great management that been institutionalized into the culture of a company will consistently continue to produce great results for its shareholders.
I just want to be one of those shareholders.