A long-time scout, who still works in the industry, once compared his job to investing in stocks.
It's not just the current value he's looking at, he's looking to see how his client's investment might grow and mature in the future. Sometimes a stock looks really good --- it's grown to a certain point, it would appear the future is bright, and everything is peachy.
But then you dig deeper and you realize there are flaws and concerns there. Maybe it's already peaked, maybe the stock will be impacted by an industry shift in a few years, maybe it will struggle to adapt.
Sometimes the better investment is in the company that no one is talking about. Or that you're not buying high on.
And you make that decision carefully, because it's your ass if you miss. It's your salary, your career and your ability to provide for your loved ones.
It's very easy to go for broke when there's nothing to lose. It's alot different when it's the rent money, or its a car payment, or the money for your kid's braces.