Share Amount vs Quality of Company

Often new investors will display the number of shares they hold in a company, but will just as often be reluctant to mention the performance of the company. Charles Olgseby of Todd Capital talks exclusively about the differences and traps newbies find themselves.

“First and foremost, in stocks, as with anything, you usually get what you pay for. A cheap stock is cheap for a reason. An expensive stock is expensive for a reason. To quote WB, Warren Buffet, “it is better to own a wonderful stock at a fair price than a fair stock at a wonderful price”. Your goal should be to find quality companies, not cheap prices, unless you are getting a cheap price on a quality company. Cheap trash is still trash. A lot of cheap trash is still trash. “

“One mistake I made when I was a young lad was I would buy a lot of cheap stocks because I looked at stocks as lottery tickets or as individual bets. I figured the more stocks I had the better chance I had at winning. The problem is that if you put $1,000 into cheap stocks and $1000 into a expensive stock you still are investing $1000.”

For the full article: The amount of shares isn’t as important as the quality of the company

Leave a Reply



New Book