Thursday 27 July 2017

Top 50 Rules to Investing - Rule 16

Top 50 Rules to Investing - Rule 16


Low-priced stocks don't double any faster than high-priced ones.

Are low priced stocks a better than high priced stocks?

This is a story of two friends Ticker Ram and Chatur who decided to bet on stocks in 2005. Ticker Ram was a seasoned investor with a penchant for picking stocks quoting at low prices in the market; a strategy Chatur completely disagreed with. So, they took a bet to find out who was right. They decided to invest Rs. 1 Lakh in 2 stocks each, chosen by their respective strategies; the person with the best return at the end of a 5 year period would be declared the winner. The prize for the winner: Bragging rights for life!!

The stakes were high. Ticker Ram had to win the bet at any cost. He was of the belief that low priced stocks (say a stock worth less than Rs. 100) was a better investment than a high priced stock which was worth say Rs. 500. He was very confident that this strategy of buying low price stocks was definitely sound.

Courtesy:see more @ http://bit.ly/2h2xkYV



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