Don't Waste Your Money on Penny Stocks; These 3 Stocks Are Better Buys
Penny stocks may provide the impression that you can earn multiples of your original capital since they are usually cheaply priced, but this is a dangerous illusion. Businesses that have lost their competitive edge or fallen on tough times eventually end up in the bargain bin because their businesses are in trouble. By rummaging through this bin, you may inevitably end up buying a subpar business that's likely to stay cheap or end up even cheaper.
High-quality businesses, on the other hand, deliver consistent growth over time and many also pay out an increasing dividend due to improved business performance. Investors can end up with the best of both worlds -- a steadily rising share price and an increased flow of dividends into their bank account. The key is to identify trends and catalysts that such businesses can latch on to that will power their growth for many years to come.
Rather than wasting your money and effort on penny stocks, here are three billion-dollar companies you should look at instead.
Source Fool.com
