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Good Stocks to Buy
When it comes to asking what are some really good stocks to buy, my idea has always been to buy stocks in well established companies that pay a good dividend, and that at the time seem to be trading at a price below what they truly should be valued at. This made me hit the Google search to see what others thought, and not much to my surprise I found that Tim Hanson who writes for the fool, said something very similar recently. He writes, “Put $100,000 into undervalued, dividend-paying stocks today. Through a combination of capital gains and reinvested yields, the market could turn that single lump sum into a $1 million fortune over the next 15 to 20 years.” I couldn’t agree more.
It wasn’t my idea
I guess I can’t take credit for the idea then. But I don’t think Tim Hanson can either. I’m sure we are not the first people to come up with the idea of buying stock in companies that seem to be undervalued… isn’t that part of Warren Buffett’s mantra? And to buy stock in companies who give a nice quarterly dividend? Well, who wouldn’t think that some of the best stocks to buy are going to be those that, in addition to growing over time, again because they are undervalued, are also those that are going to give you a decent little chunk of change every quarter that you can withdraw, or preferably reinvest back into more shares of the same stock? It just makes sense.
Great stocks abound
The point here is that you can find good stocks to buy wherever you are looking. There are roughly 3000 dividend paying stocks in the stock market, so that gives you a large base from where you can begin to drill down and look to find those that are from the well established, yet undervalued companies that I was referring to. This to me is a much more sound plan for the long term than trying to get involved in what Is the latest best stock to buy, here today but gone tomorrow type of approach. This is the approach that gets you somewhere in ten years, twenty years, as opposed to only being able to look back and count your never ending per-trade fees because you thought you would day trade your way to millions in a couple of months.
Slow but steady wins the race when looking for good stocks to buy. A plan like the one above, executed over time is sure to increase your stock buying portfolio in ways you hadn’t imagined.