Omit a Company's One-Time Extraordinary Gains

The last important trap the winning Investor should sidestep is being influenced by nonrecurring profits. If an organization that manufactures Computers reports earnings for the last quarter that include profits from the sale of real estate or a plant, for example, that pari of the earnings should be subtracted from the report. Those are one-time, nonrecurring earnings and are not representative of the true, ongoing profitability of corporate operations. Ignore them.