From Nasdaq: 2024-05-08 10:05:00

Investors may be wary of buying stocks near all-time highs, with major indices like the Nasdaq and S&P 500 surging in the past few years. However, the rise in stock prices doesn’t always mean you should sell. Understanding a company’s value beyond its price is key. Microsoft is a prime example of a higher-priced stock that remains a strong buy due to its improved business quality and shareholder rewards. Despite its higher valuation, Microsoft’s growth and profitability make it a more attractive investment than in previous years.

While stock prices are high, it doesn’t mean it’s a bad time to buy. When investing at record levels, ensuring a company’s financials support its stock price is crucial. Companies like Microsoft have shown that a higher stock price can be justified by strong earnings and growth prospects. Knowing why you’re investing in a company is essential, even when prices are elevated. Consider the quality of the business and its future potential, like Microsoft’s ongoing success, before making investment decisions.



Read more at Nasdaq: With the S&P 500 and Nasdaq Composite at All-Time Highs, Is Now the Worst Time to Buy Stocks in History?