Buy High – And Sell Higher!

Every new investor I have ever known – myself included – falls into the same trap: We tend to gravitate toward the penny and sub-penny stocks.

It’s natural to have visions of grandeur dancing in our heads of how we bought 10,000 shares of a $.01 stock that goes to $1.00.

Can it happen? Sure, anything is possible.

But is it likely? No. There’s a reason the stock price is a penny.

Most new investors would never think of buying a high-priced stock. When I say high-priced, I’m talking about stocks that are $100, $200, $500, even $1000 per share.

I know this was many years ago, but Berkshire Hathaway (NYSE: BRK.A) was once priced at $1000 per share. Today, it’s $300,000 per share. So as it turns out, that $1000 share price was a steal!

Most stocks that are priced that high are proven businesses – and, believe it or not, carry less risk than a stock priced at $1 or $2.

Let me give you an example.

Mercado Libre (NASDAQ: MELI) is “the Amazon and eBay of Latin America”. A few weeks ago, the stock was $368 per share.

The day after they reported earnings, the stock opened at $410 and closed at $448. You would have made 21% in one session.

A few days later, it traded as high as $512. This would have been a gain of 38% in less than a month!

Remember: when we buy stocks, the percentages we make are the same, whether the stock price is $1 or $1000.

Higher priced stocks very often offer higher returns and less risk than lower priced stocks.

So don’t be afraid to buy high – and sell higher!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

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5 Stocks Under $50!

Good morning!

Stock prices move up and down on a daily basis for a number of reasons.

As we’ve seen, many of the premium named stocks come at a premium price.

It is possible, though, to find a good – or even great – company under $50 per share?

Yes.  It is.  I have here a list of 5 companies with tremendous futures.

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1. Activision Blizzard (NASDAQ: ATVI), $47.84  

Activision is one of the leading video game publishers in the world.  Lately, it’s taken a hit with the departure of one of its partners, Bungee (the designer of the Destiny franchise).  After reaching an all time high of close to $85, the stock is down 37% from that high.  We believe that Activision has excellent management and that their future is incredibly bright, along with the future of gaming in general.

cognex

2. Cognex Corporation (NASDAQ: CGNX), $43.77

Cognex is the leader in machine vision for robots in factories.  It is a wonderful company, and industrial robotics is going to be gigantic!  Cognex is leading the charge in machine vision.

tencent jack ma

3. Tencent (OTCMKTS: TCEHY), $44.05

Tencent is the largest company in China, and one of the most innovative companies in the world.  They are also the world’s number one gaming company.  When you look at the demographics in China – which is basically the size of three United States of Americas – Tencent has room for tremendous growth!

stratasys 3d printers

4. Stratasys (NASDAQ: SSYS), $21.96

The estimates for the 3D printing market over the next 5 years are insane!  It is expected to grow ten times from where it is today.  If that materializes, Stratasys is a company you want to own.

roku

5. Roku (NASDAQ: ROKU), $43.72

Roku is one of the leaders in the cord-cutting revolution, and they’re aiming to become its operating system.  Microsoft’s (NASDAQ: MSFT) dominance was in its Windows operating system; every computer in the world used it.  That’s what Roku is trying to become to streaming TV.

If you are new to investing and looking to buy a quality stock that fits your budget, these five are a good place to start.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)