W
waldguy
Guest
Before you plunk down $1000 for a stock that's way down you should consider something. Which companies in the car sector have outperformed Ford over the last 5 years or so? Names like Toyota (TM) and Honda (HMC) come to mind.
The price of a stock has nothing to do with you getting a company "cheap". A cheap stock is one that may be at its low in a business cycle, but whose management and business model has proven superior and recession proof. Even if you have to buy a partial lot (less than 100 shares), it may be worth considering. Buy good companies for the long haul not just those that have gone down a pile. There's no guarantee they will go up to where they were because they often get heavier with inefficient baggage as the years go on.
The price of a stock has nothing to do with you getting a company "cheap". A cheap stock is one that may be at its low in a business cycle, but whose management and business model has proven superior and recession proof. Even if you have to buy a partial lot (less than 100 shares), it may be worth considering. Buy good companies for the long haul not just those that have gone down a pile. There's no guarantee they will go up to where they were because they often get heavier with inefficient baggage as the years go on.