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Don’t shun expensive stocks right away

Nov 19, 2024

Don’t shun expensive stocks right away

Just because a stock is expensive doesn’t mean you should shy away from it. Investing guru Warren Buffett summed it up perfectly: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” What matters most is the returns that stock can give you. Take tech company Nvidia, for example. Right now, its stock is trading around US$140 per share. That may sound pricey, but the company’s stock has jumped by over 190% this year alone, even after tripling last year, delivering huge returns for investors. So, even though the price is higher, investors are seeing big rewards. You might find another stock that’s cheaper, but if the company isn’t doing well, you won’t get much back. Before making a pick, make sure the company you want to invest in has good growth potential and can deliver solid returns. 

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