Finding Bargains

  • The cheapest investment in an over-valued market may not be a bargain.
  • The complexity of technology companies and financial institutions makes finding bargains difficult.
  • Having to be fully invested makes it hard to wait for bargains.
  • Having too much money makes it hard to find bargains.
  • Most stocks are priced fairly or too high. You need patience to find stock bargains.
  • Greed forces to you act on stocks that are not bargains.
  • Envy of others' gains forces you to buy even though the others may have gotten the bargain.
  • Lack of business sense to evaluate if a stock is a bargain prevents you from finding them.
  • In trying to find a bargain, investors cannot know all there is to know. Even if they could, they could only know it about the past and present. The future is unpredictable.
  • You need to understand not only that the stock is a bargain but why it is a bargain. There may be a good reason for the price being down.
  • Why do stocks become over or under valued? Supply and demand, investors do not know how to value a stock, margin calls, year end tax loss selling, stock moving into index and index fund buying, window dressing, momentum investing.
  • Forces that cause stock bargains are temporary.

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