Published on 17 Sep 2023 on Insider Monkey via Yahoo Finance

15 Penny Stocks with Biggest Upside

In this article, we will take a look at the 15 penny stocks with biggest upside. To see more such companies, go directly to 5 Penny Stocks with Biggest Upside.

Everyone wants to find stocks with upside. But the stock market turmoil that started back in 2022 amid rising inflation and interest rate hikes has shown the importance of managing risks and investing wisely in stocks for the long term. Value investors like Warren Buffett and Howard Marks time and again talk about the concept of downside protection, emphasizing that one of the biggest goals during investing should be not to lose money. A 2016 report entitled “The Upside of Less Downside” by Alliance Bernstein talks about a similar concept. The report said that at the time that the fear of losing money is rapidly increasing worldwide amid changing demographics. As global population begins to age, people are hesitant to take risks and put large amounts of money in equities because they don’t want to lose their safety nets during retirement. The report then talks about a 90/70 upside/downside portfolio and says:

“Imagine a hypothetical global stock portfolio that captured 90% of every market rally and fell only 70% as much as the market during every sell-off. What would the long-term returns of this portfolio look like? You’d be forgiven if you thought it would underperform. It wouldn’t.”