McMurtry Investment Report & Model Portfolios

Why do most buyers of low priced stocks lose money?

July 7, 2023

Stock Market Basics

I recently purchased the 7th edition of Graham and Dodd’s Security Analysis. A quote from the book is very revealing.

“Public buys issues that are sold to it, and the sales effort is put forward to benefit the seller and not the buyer”.

Differing from what many investors believe, the executives of small cap companies only want to see the share price rise in order to sell their holdings. Many of these executives provide a false reading of their ultimate goals.

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