Don't Waste Your Money on Penny Stocks, These 3 Stocks Are Better Buys The Motley Fool

Some investors are looking for a fast-track to building wealth, and that pursuit sometimes leads them toward penny stocks. After all, these stocks look inexpensive, and the payoff could be huge, right? The problem with this investing strategy, if you can call it that, is that penny stocks are notoriously volatile, and their businesses are often murkier than those of other publicly traded companies. And most importantly, you're far more likely to lose money buying a penny stock than buying stocks in good companies and holding onto it for years. If you're tempted to go the penny stock route, reconsider that decision by first looking at how Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Square (NYSE:SQ) have generated solid long-term returns for their investors and set themselves up for future growth. Microsoft may seem like a boring tech stalwart, but the company is a leader in emerging tech trends, including cloud computing and artificial intelligence.