Why Searching for Cheap Stocks Is the Wrong Investing Strategy

Every investor wants to find stocks priced at levels that pave the way for capital appreciation. But focusing too intently on stocks that look cheap based on traditional valuation metrics can diminish return potential without meaningfully reducing risk (and even lead to substantial losses).

Rather than focusing on companies that appear to trade at low valuations, investors will usually be better served by prioritizing companies that have sturdy foundations and avenues to long-term growth. Time and the luxury of patience are the individual investor's greatest advantages in the market, and strict adherence to distinctions between "value stocks" and "growth stocks" can lead to short-term thinking that hinders the pursuit of great deals.

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Source Fool.com