For many uninitiated or inexperienced investors, the idea of trading inexpensive stocks can seem like a low-risk way to break into the world of investing. However, while the price tag on penny stocks may be easier to swallow than those of blue chip stocks, the relative risk is far greater than the risk of buying into a well-established company.
There are ways to approach investing at this level, and with the Rule #1 approach towards researching investments and analyzing price vs. value, the risk of speculation diminishes greatly when we’re buying into a company that we truly believe in.
On this week’s episode of InvestED, Phil and Danielle come back to the topic of penny stocks and discuss why the fundamentals of value investing can be applied to the smallest of companies in addition to the behemoths.
To understand more about the potential and reliability of a company you’re researching, click here to get your copy of the Big 5 Numbers Guide: https://bit.ly/3psMESQ
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