A picture is better than a thousand words. Cash flows of companies over the last few years.
This article brings one point to my mind. No one is immune to investing fads and “themes”. In rising markets, people are willing to forget good corporate governance. I especially prefer to stay away from companies where material success is dependent on who is in power in the state government and central government, and how laws and regulations are twisted.
This article is from a good blog on investing called Manufactured Luck. It describes investing in the sugar sector which is famous for its cycles.