441 - Penny Stocks part 3

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.6 • 1.6K Ratings

🗓️ 24 October 2023

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

The abundance of unlisted companies available to buy into is a complicated resource for investors. One one hand, the opportunity that comes from smaller stocks being overlooked could lead to incredible results from unlikely sources, but the potential for staggering losses is equally high in this volatile market. For those willing to dig into the thousands of pink sheet stocks and do the necessary due diligence, the penny stock market can be a gold mine of prospective businesses that don’t get attention from the vast majority of investors. However, this entirely hinges on avoiding the countless scams and schemes that plague these unlisted stocks. This week, Phil and Danielle return once again to the topic of pink sheet stocks and why they may or may not be worth your time and attention as a value investor. If you’re in the early stages of your investing journey, don’t miss out on your free copy of The Complete Guide to Investing for Beginners: https://bit.ly/3MBzewf Topics Discussed: Pink sheet stocks vs. OTCBB stocks Reverse stock split Issues of scale/accessibility Resources Discussed: Got something you’ve been wanting to ask Phil and Danielle? Send it to [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey everybody this is Bill town and this is Bill town and this is Daniel town welcome to the invested
0:14.1	podcast we are as you know deconstructing investing the way the best investor
0:22.1	in the world does it, Warren Buffett.
0:26.0	Something we've been doing for, I've been doing it for 40 years,
0:30.0	and this podcast has been doing it for seven years.
0:33.0	And I've been struggling along.
0:36.0	Danielle how to do this.
0:38.0	She's becoming quite good at it.
0:40.0	Oh dear.
0:41.0	And we keep saying we're going to really get deeper into penny stocks here for you guys.
0:46.0	About like, why would you want to do that?
0:48.0	So we ended last time with me going like, why have we spent so much time talking about how they're bad and unreliable and dangerous?
0:59.6	And why did we start talking about them in the first place?
1:02.6	So that's my question.
1:05.4	Why did we start talking about these in the first place?
1:08.6	And if I remember right, it's because you said
1:11.3	they could be really great for newbie investors. I don't know if you said that.
1:17.4	Maybe small investors to get started with. Right on. I think they're going to require more skill, right? It means a little
1:28.8	bit more intuitive. As soon as I said newbie, I was like like that doesn't sound right. But they are they are kind of a
1:37.2	classic place for someone to make a lot of money starting with a little money because of the potential of these companies which are not listed in the main
1:46.3	exchanges to be improperly priced for lack of coverage by professional analysts.
1:54.4	And therefore you have a market that's, and it's a much smaller market, much less money
	...

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