Stock Market Investing: Value, not Price
IBM may be underpriced at $120; while Ford might be overpriced at $7. I once bought Cisco Systems for around $20 thinking that since it had fallen from $80 it was cheap. Guess what, it fell further. In fact, here we are almost nine years later and CSCO is just under $23.
Learn from my mistake, pay attention to fundamentals…P/E, Div Yield, growth rate, free cash flow, etc. Your research should give you a number that the stock is worth to you. Prices rise and fall. Sometimes without a good reason. Don’t get fooled by a “sale”. Only buy or sell if the price matches your investment goals. Not because a stock looks cheap.
I’m planning to share more of my lessons learned in upcoming posts. Feel free to add your own stories in the comments below.
Tags: investing, stock market
