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Value Investing: Direct Purchase Plans

Many of us would love to get into value investing, but don’t have large amounts of cash spare. Contrary to popular belief, you don’t need to have thousands of dollars spare. You can start investing with as little as 4 dollars by purchasing direct purchase plans. A direct purchase plans provides many advantages for new investors. The first advantage is the low amount of cash that one needs to invest. The second is you can purchase these plans directly from the company, without having to go through a broker.

Corporations are not allowed to advertise their direct purchase plans; however there are several internet sites where you can find companies that participate in this program. If you are someone that has very little money left at the end of the month, you can still participate. If a company’s share price is 50 dollars per share and you only have 25 available, a direct purchase plan can allow you to buy that one half share that you can afford. Gradually, over time, as you invest more money you will start to see your portfolio grow.

Many investment opportunities will have penalties if you miss payments over a period of time. Some policies stop all together. This will not happen with a direct purchase plan. You invest what you can when you can. You can also have money taken directly from your account or pay check on a weekly or monthly basis.

To find out about companies that offer direct purchase plans, shareholder.com is an excellent source. They have the most comprehensive list available and can offer information on how the company is performing. Some good advice to follow is to invest in a company that you know quite well. Perhaps a company that you do business with. Later, as you start to invest more, you branch out and diversify.

Today, you no longer have to have large amounts of cash available to practice value investing. With the help of direct purchase plans, you can get started and keep going with what you can afford. There is lots of good information available online to inform you of direct purchase plans. Before you know it you could be value investing.

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