Bargain Pricing – Shop Till You Drop…

Bargain Pricing - Shop Till You Drop... by The Sova Group

Black Friday and Cyber Monday provide some helpful reminders of time-honored value investing principles.  Let’s recap a few.

Discounting from previously advertised prices may not indicate a bargain is at hand. Imagine the following product being discounted 90%…does that make it a buy?  No discount would make the product below a bargain, in other words, it is overvalued at any price.

Likewise, companies in the stock market are frequently selling at lower prices than the previous year or just a few months ago. However, this does not mean that...