Contrarian Value Ideas

[gfp927z]

Rbl100, >> Money is not made with high pps stocks <<

Some of the best performing stocks have been the largest -- NVDA, AAPL, MSFT, AVGO. Also, you can now buy fractional shares of high pps stocks with no commission. Check out the phenomenal long term performance of AZO, BKNG, BLK, KLAC, META, MPWR, TDG, URI. With these, the pps is so high because they decided not to split the stock. With companies that have consistent success for 10, 15, 20 years, the odds are good that the success continues.

With penny stocks (under $1), you might get lucky, but the odds are against it. In a group of 10 penny stocks, 2 or 3 may ultimately do well, while 5 go nowhere, and 2 or 3 go out of business. So it all depends on your ability to accurately analyze their prospects, balance sheets, competition, the overall sector, etc. But that's the realm of brainiacs like Buffett and Peter Lynch. For us mere mortals, better to avoid pennyland imo.

But the bottom line for any strategy is --> over extended period, have you had success, or failure? If the strategy clearly isn't working, then change the strategy. I tried investing in biotech stocks for numerous years, but the consistently lousy results made it clear that something had to change. Regular investing can be boring, but the consistent profits make up for the lack of excitement :o)



---