Debunking Stock Investing Myths
Investors often underperform by following investing strategies that are based on perception rather than long-term research or reality. Even though there have been many studies showing what does work, several stock investing myths continue to exist. Understanding and avoiding these myths can make a substantial difference in wealth over your lifetime.
Myth: Growth Beats Value
Strong revenue and earnings growth attract attention. This is particularly the case for companies operating in emerging industries or selling innovative products and services. Such growth makes for great news stories and everybody likes a winner. Therefore, it only stands to reason that soaring growth should lead to soaring stock prices.
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