Are your shares overvalued?

MAKING a profit on our investments is what investing is all about. That almost goes without saying. Investors generally buy shares in the hope that, sometime in the not-too-distant future, they will appreciate in value.

As sensible investors, we should already know to invest with money that we don’t need for the next five years. That way, should the shares that we bought fall, we would not be too distressed.

We might be a bit disappointed but probably not too anxious. After all, we are not desperate for the cash. Still, we do not set out to buy shares to watch them fall in value. We want them to go up in price.