Thursday, September 16, 2010

The right time to buy value stock

The best time to buy value stocks is when nobody else wants them. If everyone "knows" that they are producing the next big thing, changing the world and so on, the shares are not going to be cheap.Value stock are usually not the ones grabbing the headlines for their outstanding performance or joining the ranks on the 52-week high lists.

The real excitement come from the extra 2% to 3% a year returns, multiplied over a lifetime of investing, that make you the substantial piles of cash down the line. For some people, this approach is often too boring.

Too often, most people think that to make money in stocks, you will need some luck. But more importantly, you will need a lot of time for the force of compounding to work to its fullest impact. If you start young at around 25, you will have 30 years of time to work for you until you reached 55.

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