Invest based on a company's future potential
"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Philip Fisher
Market prices don't always reflect value. Choose investments based on long-term prospects, not recent performance.
"Price is an issue in the absence of value. Thus, price becomes relative. Is $1,000 too much? Can't tell unless I know what I am getting in return. This is evidenced by the investor who arbitrarily assigns a value or selects one based on a narrow focus," says CFP professional Robert Fragasso, chairman and CEO of Fragasso Financial Advisors in Pittsburgh.
Know the true worth of investments to whatever degree possible.