> A company that is not profitable now that is going to make a profit down the road is a good investment, since you'll be buying it at a discount on the market

> A company that is not profitable now that is going to make a profit down the road is a good investment, since you'll be buying it at a discount on the market now. This line of thinking is the reason a lot of people lose money investing. If investors are confident a company will one day be profitable, the price will trade at a value that is very close to what it will be when it hits those numbers. The market takes into account future cash flows. In order to beat the market, you have to either know, or guess correctly, something that the rest of the market doesn't know. So, usually, you need luck or insider trading.