Forget Penny Stocks -- Cisco Systems Is a Cheap Stock to Buy Now
Do you like to gamble on penny stocks? Tickers selling for less than $5 per share can deliver absolutely massive gains if you get lucky, but these companies are rarely proven performers, and many of your penny stock bets will result in negative returns. That's fine as long as you know what you're getting yourself into and are prepared to take some dramatic losses along the way. Many of these stocks are cheap for a reason, after all.
But you don't have to steel yourself for total losses if you focus on high-quality companies with healthy business plans instead. Their shares will usually cost quite a bit more, but you won't lose any sleep over their day-to-day market performance. The real key to successful investing is to buy top-shelf companies at reasonable prices, and then sit back to watch them post massive growth for many years or even decades.
One share of network equipment veteran Cisco Systems (NASDAQ: CSCO) sells for roughly $40 today, and that's a steal for this fantastic company. Let me show you why you should prefer a single Cisco share over 10 shares of some shady $4 penny stock.
Source Fool.com
