An Investor’s Roadmap for Finding and Buying Low-Priced Stocks
‘Buy low, sell high’ is the time-honored proverb of investing. Investors who wind up ahead of the game have successfully bought low enough often enough, while investors who wind up out of the game have bought high and sold low once too often.
Since ‘buy low, sell high’ is the fundamental maxim of investing, there are, of course a plethora of ‘buy low, sell high’ schemes promoted by one self-serving party or another to lead investors to the promised land. With the so-called electronic highway, the ‘buy low, sell high’ pitches will probably crop up on computer screens with great regularity.
Many of the promises with which we are inundated tend to miss the boat. In order to effectively buy low and sell high, investors have to truly buy low. So, the appropriate question to ask is: “Do you really tend to buy low?”
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