2 Dirt-Cheap Financial Stocks You Can Buy and Hold for the Next Decade
Making good long-term investments requires finding great companies that have the products, business models, and leadership to succeed over the long run. But investors also need to consider the valuation of these companies. A great stock trading at an inexpensive valuation offers more downside protection, as well as more room for potential upside, than a great stock already trading at sky-high valuations.
Fortunately for investors, there are some great stocks in the financials sector that are currently trading at strikingly cheap valuations despite having compelling stories and business models. These two dirt-cheap financial stocks look like solid buy-and-hold investments to bolster your portfolio for the next decade.
It doesn't get much cheaper than Ally Financial (NYSE: ALLY), which currently trades at just 4.3 times earnings. Furthermore, shares trade below book value, which means that investors are valuing the company at less than it would be potentially worth if the company's assets were to be liquidated. This gives investors a margin of safety when starting a position in Ally.
Source Fool.com
