Two reasons why you should invest in penny shares

Julie Brownlee, Fsp Invest, 29 Apr. 2015

Tags: penny shares, investing in penny shares, why invest in penny shares, penny stocks, investing,

Many investors may avoid investing in penny shares as they view them as high risk, speculative investments.

There are risks investing in penny shares, but the potential reward of putting some of your money to work in these stocks can make it very worthwhile.

So why should you consider investing in penny shares?

Read on to find out…

#1: Research proves that penny shares can deliver impressive profits

Penny shares, which tend to be smaller, younger, high growth companies, have the potential to deliver rapid profits over the longer term.

Research conducted by the London Business School showed that smaller companies outperform their larger counterparts apart from during recessionary times.

A lot of this comes down to these companies being much more focused and efficient than larger businesses. These companies can make decisions and implement changes quickly.

#2: Many professional investors ignore penny shares

In many instances, fund managers and institutional investors don’t look to invest in penny shares. Their investing mandate requires them to invest in larger companies which can absorb the millions of rands they have to invest.

This can lead many penny shares that have amazing potential to hover under the radar. As a private investor, you can take advantage of this.

Of course, making money from penny shares isn’t easy. But if you can commit the time and research to them, you might just uncover a penny share that outperforms over time and makes you richer in the process.

So there you have it. Two reasons why you should invest in penny shares.

*********** New release ************

A straight up offer from one of South Africa's top financial analysts and small cap experts, Francois Joubert:


Click here and I'll show you how I do it!


Related QA

jchiosa asked:
hey guys, i am subscribed to pennyshares. end of last month, didn't receive any communication from you guys. login at does not [read more]
Published at 08 Aug. 2017 in: Penny Shares Francois joubert --- your neck on the line here. 1 Answer
philrina asked:
Is Francois out of the office / overloaded or simply not interested as he does not answer the questions that I have put to him on 13/6/2017 and my [read more]
Published at 29 Jun. 2017 in: Penny Shares Selling ? holding 2 answers
vmtimde asked:
HI Francois Please assist me in cancelling my subscription to pay monthly for red hot penny shares. I am not interested anymore. Kind [read more]
Published at 11 May. 2017 in: Penny Shares Cancel debit order 2 answers
oliviees asked:
Dear Francois, According to the April 2017 RHPS newsletter one of the companies recommended as a buy is ‘Anchor Group’. With the sharp drop in [read more]
Published at 06 Apr. 2017 in: Penny Shares Buy decision 2 answers
Fielix asked:
Hi Francois, Prescient's share price dropped from 100c to 22c very suddenly. Can you please explain what happened, and if we should still hold on to [read more]
Published at 07 Mar. 2017 in: Penny Shares 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories