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Why do you buy a stock ?

sakar's picture
Submitted by sakar on October 15, 2009 - 04:07

So you are buying a stock say Suzlon for 85 Rs today , definitely you are thiking its worth more than 2100 hence you are buying it. ( let me assume you understand why we invest )

On the other other hand you have another stock which is Unitech .. now cheap stock comes with risk in it.

Which one should you buy Suzlon with 30% risk or Unitech with 50% risk.  Read this great article on risk adjusted investing.

http://blog.alphatheory.com/2009/08/why-do-you-buy-an-asset-why-not-use-...


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