I am susceptible to the bias of “52 week high and 52 week low” syndrome when analyzing investments. As a matter of logic, I know that a stock’s current price in relation to its past price is not determinative of whether it is the most attractive value today. The best long-term investments tend to generate the fastest growing future profits mixed with cumulative dividends, and a stock trading at a high is just as capable of being the best performer as a stock well off its highs. Does anyone really question that Google/Alphabet stock, which has shot up to $800 from $695 after I covered it this summer, will be one of the best performers over the coming decade?
Still, I can’t help but consider it a strong signal of interest when a company is (1) currently and historically profitable; (2) paying out a dividend that is high and has … Read the rest of this article!