Why I’d buy dirt-cheap shares now to capitalise on a stock market recovery

Dirt-cheap shares could be among the biggest beneficiaries of a long-term stock market recovery. Their prices could currently include wide margins of safety that provide significant scope for capital growth in a rising stock market.

A strategy of buying such companies has generally been very successful in the past. As such, with many cheap stocks including companies that have dominant market positions and sound finances, now could be the right time to capitalise on their low prices.

High potential returns from dirt-cheap shares

Buying any asset at a lower price is usually a better idea than buying it at a higher price. It means there is greater potential to generate capital returns, since investors may not have priced in its…