Sorry, Cheap Stocks Aren't the Best Stocks. Here's Why
For some investors, especially those with limited funds, looking for stocks with the lowest share price may be tempting. After all, if a stock has a low price per share, you can buy more of it. But just because a stock appears to be cheap doesn't mean it's a good buy. In fact, some of the most expensive stocks in terms of price-per-share can be way better investments than almost any penny stocks, which have very low share prices but come with outsize risk.
And while it may have made sense in the past for investors to limit their purchases to companies with low share prices if they didn't have much money to put into the market, that's no longer the case. In fact, rather than looking for cheap stocks, you should look for companies you believe will perform well over time regardless of the price. You can do that thanks to fractional shares.
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Source Fool.com
