HSBC’s share price is around an all-time high, so why am I buying more of the stock now?
HSBC’s (LSE: HSBA) share price is trading around an all-time high, having risen 56% this year alone. However, this does not mean there is no value left in the stock, as value and price are different.
Value reflects the true worth of the underlying business, while price is whatever the market will pay at any time. In my experience as a former senior investment bank trader, knowing this difference is the key to big long-term profits.
Consequently, I took a deep dive into HSBC’s business and then its share valuation to assess its value proposition.
The key driver for any stock’s price is earnings growth in the underlying business.
A risk to HSBC’s is the imposition of any new tax…
