some quality stocks you can buy under Rs.100 from the stock market and these shares can grow fantastic in long-term. If you can strategically invest in these quality shares for a longer period then you will be able to gain compounding returns against your total investment. Investing in quality company shares for a long period is known as valuable investing.
The most famous American investor and Intelligent investor writer, Benjamin Graham is described as value investing. By following his investment philosophy and methodology his student and today legendary investor Warren Buffet became the world’s richest investor. In this particular investment strategy, the investor carefully chooses specific cheap quality company stocks that have exceptionally better future growth potential.
As a value investor, you cannot choose just any undervalued stocks under 100 available on the stock exchange. To choose quality stocks first, you need to know the company’s fundamentals.
According to the father of value investing, Benjamin Graham, any investment that has been made without any prior evaluation and research about the company is purely speculative. you need to invest after you have properly researched the company and its fundamentals and technicals.
Some quality stocks below Rs. 100?
- IDFC FIRST BANK (CMP-Rs.83)
- SUZLON ENERGY (CMP-Rs.41.42)
- YES BANK (CMP-Rs.22.31)
- CENTRAL BANK OF INDIA (CMP-Rs.67.7)
- KOHINOOR FOODS (CMP-Rs.41.74)
Contents
Benefits of buying stocks below Rs. 100?
Everyone can buy the Undervalued Company Stocks
To become a great investor, you do not need to be financially wealthy. Yes, you heard right. No educational qualifications matter, only if you have a long-term vision of the stock market, learn ability from mistakes, and have patience. Patience is the biggest challenge for any investor who will prosper by value investing.
The trick is investing in quality stocks under 100 Rs and waiting for them to become multi-bagger over a considerable period, the strategy is solely based on long-term returns ignoring short-term fluctuations in the stock market.
Keypoint:
- It is not always necessary to buy blue-chip stocks that are available for exceptional market prices. You can also invest in multi-bagger penny stocks that are available under Rs. 100.
- Buying undervalued stocks can be beneficial because the returns always you will gain are more than those of any large-cap or mid-cap companies.
- You can extensively enjoy the benefits of compounding after you have invested in undervalued stocks if you keep on reinvesting your returns and dividends for long-term
- You can invest in the stock market through an online broker like Zerodha, Grow & Angel one
Always keep in mind before buying stocks under 100 Rs
1. Do Not buy any stocks through Tips & call
No matter how strong the source is, never follow a stock marketing tip blindly without researching personally. Always select the stocks after doing your proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can ruin your capital quickly.
2. Eliminate Loser Stocks from Portfolio
There is no type of confirmation that a stock will rise after a crash. Know that it is extremely important to be practical about what is possible and what’s impossible in the stock market. So, Always select the stocks after doing your proper research and analysis on the performance as well as the companies. any stock that is performing poorly in your portfolio, accept your mistake and sell it quickly to preserve capital.
3. Don’t Exceed Your Investment Budget Abruptly
While it’s true that long-term investments are better than other forms of investment like FD, you shouldn’t exceed your investment budget in hurriedness. before investment, decide on a fixed amount and invest it across various quality stocks. sometimes all capital investing in only one stock is foolish, break your capital into 10 parts for multiple good-performing stocks. so, all big investors always say to Diversify your portfolio
