Is it a good idea to buy a beaten down blue-chip stock?

 

I get this question every so often. Sometimes, the person asking the question follows up by asking me "aren't you supposed to buy them when they're on sale?"

 

Take step back. A company that exhibits qualities that are valued by investors, such as consistently strong sales and earnings growth, could see its common stock trade lower while it's on its way to a higher price per share. These dips, a.k.a. volatility, are normal and the cause could be a number of things, such as a broad based stock market retreat. That is NOT what I'm talking about in this post.

 

I'm talking about household, blue-chip stocks that have been beaten down to a fraction of the price they once traded at, i.e. a 70 dollar former blue-chip stock now trading at 10. Does the low price mean you're getting a great stock at a discount or is it fatal attraction? This is the question I answer in this video that I recorded a few days ago. 

 

Side note: I post all of my videos on LinkedIn, but not all of them make it into my Friday email. So be sure to connect with me on LinkedIn so you don't miss any.

 

Here you go and please reply with your thoughts: 

 

 

Is it a good idea to buy beaten down Blue Chip stocks?

 

 

Now watch this video from October 10th when the Dow Jones Industrial Average was down over 800 points - What no one is telling you:     STOCKS CRUSHED TODAY! DOW DOWN OVER 800 POINTS! DO THIS!

 

If you're looking for a better way to save, invest, and plan for your retirement, click on the "Let's Talk" picture below to schedule a 15 minute phone call with me.