I am a young professional who specializes in small-value investing. I have held AAPL, MSFT, and NKE for a long time. In addition, I invest over 1000 AUD every two weeks in my retirement fund, contribute to my growth saver, and set aside the majority of my pay so that I can purchase more shares whenever I perceive a good opportunity.
In my spare time, I planned to start analyzing under $5, undervalued firms, and I would invest all the extra cash I would earn from working extra hours.
I can’t wait to learn more about these businesses and enjoy myself in the process. What are your thoughts on this? Kindly share your thoughts with me.
Buffett has mentioned that if he were starting with a million dollars today, he would focus solely on small companies. Other prominent investors, like Lynch, share this perspective as well. Investing in small companies can offer the best returns if you know what you’re doing. However, many people believe they do but end up losing their money because they don’t.
Depending on how many shares are available, $5 may not always be cheap.
Whatever you learn about these companies is already known to a thousand other people, who have factored that knowledge into the share price. Further study does not equate to higher profits.
the price is not the important factor here. Focus on the market cap instead of the price. If this is the extent of your understanding, you might want to watch Damodaran’s videos rather than focusing on stocks.
It makes no difference how much money it is worth. Would you consider a $10 firm that had divided or issued more shares after you had previously dismissed it?
the price is not the important factor here. Focus on the market cap instead of the price. If this is the extent of your understanding, you might want to watch Damodaran’s videos rather than focusing on stocks.