See it like it is
Equities Lab will tell it to you straight. We debunk myths as part of what we do. Believe that buying high P/E stocks generally works better? We’ve got a screen for that.
This screen had its moments, but it spent a lot of time underperforming. How about buying at (or near) the 52 week low?
Another fine myth busted before it could hurt your portfolio.
A kernel of truth
How about penny stocks that shouldn’t be? The idea here is that these stocks have revenue, positive earnings and inventory. First we show the reasonable companies screen:
It had it’s moments, but …. oh wait! Myth confirmed. Reasonable companies outperform. How about those with low share prices, say less than 3 dollars, which are still “reasonable”?
That definitely had it’s moments, but I’ll pass.
Why does this matter?
This matters because you are now wiser than you were when you started, and that wisdom is priceless. The next time someone (you, probably) has a great idea, your fingers will be itching to test it. That testing will ensure that you succeed, and enjoy the process.