Most common mistake most investors do is that they buy price not business. If you ask some person that what stock you want to buy in 10000 INR, 1000 share at price of 10 or 10 share of Price 1000. Then most of the new investor prefer the first.Many still believe that 10 INR stock can go to 100 quickly and they can make huge but this is not the case.
Not all penny stocks become multibagger, 1 in 20 stock only sail through , rest all either depreciate or just remain at same level. Let’s have look at this with example.
Here Name of Stock A is Suzlon and Name of Stock B is Britannia.
In 2013 Suzlon and Britannia were same in size in term of m-cap only difference was the price of both.
After 5 years Suzlon is at same level while Britannia multiplied 7 times. Intelligent investor is one who pick a stock base on the Business model of company not the price of stock.
For any new investors , we highly recommend not to buy any penny stocks until they understand this market. Most of the new investors made mistakes initially and left the market with losses before they realize true potential of market. Comment your value destroyer stocks.
Be Smart. Invest Smartly.
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