Looking for cheap stocks? What are cheap stocks? If a stock is selling for $5, is that cheap? Let’s say you buy 100 shares of a $5 stock, or you buy 10 shares of a $50 stock. In either case you own $500 worth of stock. On average though the stocks selling for $50 tend to be more solid companies than the ones with stock selling for $5. Are you going to buy some podunk company over a solid earner just for the privilege of own 100 shares of stock instead of 10? Personally I would rather own a single share of Berkshire Hathway stock than the equivalent shares in a bunch of penny stocks. I would rather own a Walmart, or Target, or eBay, or John Deere. There are an endless number of solid companies out there to invest in.
I did buy some cheap stocks early on as I was learning to invest. The cheap stocks went down to nothing. I lost my money. Losing money sucks! It cost me some money, but I learned my lesson. I try not invest in any company that I am not sure will still be around in 10 years. Buy industry leaders. You could buy some little upstart drink company, or you could buy Coke or Pepsi. There are many little drink companies out there. Most will go out of business or be swallowed up. Coke and Pepsi will still be around 10 years from now. Heck, they will probably be around 50 years from now.And their stock will be worth more!
Maybe by cheap stocks, you meant “undervalued stocks”? The stock market is a pretty efficient machine. There are millions of people investing their money in it day after day. If there were some redically underpriced stock out there, don’t you think thousands of other people would have already found it? If you find some stock that seems underpriced, chances are there is something about the stock that you don’t know that accounts for the stocks price.
There are no cheap stocks!