Penny stocks are a trading bet. They are favored by investors looking for some quick returns in a short time-frame who aren’t risk-averse. For comparison, blue-chip stocks and high-quality growth stocks that are preferred for the long-term portfolio. I largely agree with this idea, but there are some millionaire-maker penny stocks that are worth holding for few years.
Of course, the risk of exposure to penny stocks is always high. I would therefore look at a 10% allocation to penny stocks with multi-bagger potential. I must mention here that it’s important to screen stocks with average to good fundamentals. Or ideas that are turnaround stories. It’s important to eliminate purely speculative stocks from the list.
Let’s therefore talk about three millionaire-maker penny stocks that represents companies with a good business and positive industry tailwinds.
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