Published on 2 May 2024 on Simply Wall St. via Yahoo Finance
Does OFG Bancorp (NYSE:OFG) Deserve A Spot On Your Watchlist?
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like OFG Bancorp (NYSE:OFG). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide OFG Bancorp with the means to add long-term value to shareholders.