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No. of Recommendations: 1
Hey motleybaluga,

My 2 cents:

I think the real issue here is the mindset-- you're looking at things backwards. You don't want to start off by saying "I want X number of shares of [COMPANY] in my portfolio," you want to think "what percentage of my portfolio do I want [COMPANY] to make up," and allocate your dollars proportionately (i.e., $5 of $100 would be a 5% position.)

Fractional shares are a wonderful way to diversify your portfolio in the beginning if you only have a few dollars to invest. You can build that portfolio of 15-25 stocks (possibly alongside some ETFs) without being forced to buy whole shares. Don't think of it as "Oh, I ONLY own $5 of Microsoft," think "Microsoft is 5% of my portfolio." Everywhere from Robinhood to Fidelity has the ability to do fractional, commissionless trading nowadays, so look around! :)

Motley Fool's "The Ascent" has brokerage rankings here, if you're interested; https://www.fool.com/the-ascent/buying-stocks/

Fool on!

CMFJoeFoolery

------------
Ticker Guide: UBER, VRTX
Disclosure: May own some or all of the above-listed companies. Views expressed are my own.
See my holdings at https://boards.fool.com/profile/CMFJoeFoolery/info.aspx
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No. of Recommendations: 1
Hi motleybaluga888,

Welcome to the Fool and whatever service you subscribed to.

"Maybe some penny stocks"

Rather than buying penny stocks, I suggest taking your money to a safe burning site, pile it on the ground with a little gasoline and light it. It will get rid of your money quicker and with much less pain on your part.

In other words, don't waste money on penny stocks. They are worth exactly what the price is, next to nothing. Investors don't want them and you shouldn't either.

Ok?


"How much does a newbie have to invest to buy your recommended stocks since they're over $100 or more?"

If you do not have sufficient money to buy a single share, look into a broker like Fidelity that does fractional shares.


If you have an idea that you must own a "bunch of shares" forget that notion.

A share of stock is a partial ownership of a company. A slice of the pie. Share count is meaningless by itself.

A company is valued based on the total shares outstanding and the share price.

Think dollars instead. You invest dollars into a partial ownership of a company. Share prices generally move by percentage.

If you invest $1,000 in a company and the price increases 10%, you will have $1,100 worth of stock, a $100 gain. It make ABSOLUTELY no difference if you purchased 1 share for $1,000 or 10 shares for $100 each. You started with $1,000 of stock, ownership in that company and now you have $1,100 of ownership.

Does that help you?

Gene
All holdings and some statistics on my Fool profile page
http://my.fool.com/profile/gdett2/info.aspx
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No. of Recommendations: 0
Thank you for recommending this post to our Best of feature.

I am a newbie and I look at your recommended stocks and their prices. How much does a newbie have to invest to buy your recommended stocks since they're over $100 or more?

Whose "$100 or more" recommended stocks are you talking about?

Are you responding to a post on some other board?

*I* recommend stocks that have been paying rising dividends for 25 years or more. Here is a list:
https://www.dividend.com/dividend-aristocrats/

There are other lists, but mostly they overlap each other.

Here's a list of dividend paying stocks *I* own:

Desert (CVX, XOM, T, BNS, BKH, ED, ATGFF, NI, NWN, TRP, ENB, WRE, WGL, XEL, DUK, SO & KO) Dave
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No. of Recommendations: 0
Hi gdette2,

Thank you for your welcome. Unfortunately I don't think it was a warm welcome. It seems that you had more money than me when you started investing that you're scoffing on my pennies. Sure I want to buy the recommended stocks right now but they're too expensive for me. Besides, most of the recommended stocks now started less then $20.00. Tesla - $17 / Amazon - $16 / Appl - $22. So maybe the motley crew can research a promising stock that I can buy around this price, that's all I want. Who knows I might make more money than you but definitely, I will never tell someone with just pennies to just dig a hole, and bury it and burn it to get rid of the pain. Enjoy your ride but don't be too cocky.

I read the rest of your comments after calming down and I see your point. Nevertheless, thank you for your comments, at least I know someone read it.

thanks - it's me
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No. of Recommendations: 3
Hi motleybaluga888,

No scoffing.

When I started investing, I had to come up with $3,200 to buy a block (100 shares) of Intel (INTC). I bought 100 shares because that was the only way it was sold and I paid a $45 broker fee to do it.

The "burn it" advice is for buying PENNY STOCKS!!!!!!!!!!!!!!!!!!

Don't buy them! They are garbage!

Whether you incinerate your cash or buy penny stocks, the end result will be the same. Your money will be gone.

Penny stocks are worth next to nothing because investors do not see any value in investing their money in them.

I can't state it plainer. They are the garbage of the stock market. Some were real companies that were mismanaged into oblivion and others are shams where a company buys the company shell of a bankrupt company, slaps a new, trendy name on it that includes a hot trend, files a couple of reports, grabs a bunch of cash from "newbies" then disappears! The newbies bought thousands of shares for 2 cents each and are left with thousands of shares worth .0012 cents each. Your money is GONE.

Do you understand now?

If you can only buy one share of a good company it will grow. If you throw your money away on penny stocks, it will be gone.

There are lots of new investors on Stock Advisor for example. They buy fractional shares through their broker. They are investing in their future and that is what I would like to see you do.

As far as share price goes, few companies even go public at truly low prices. Lately, they have been "pumped" too hard. Over-hyped. When the shares are actually put on the market, a lot of the rise has already happened. Many a value traps.

It is your future and your money ...


Does that help you?

Gene
All holdings and some statistics on my Fool profile page
http://my.fool.com/profile/gdett2/info.aspx
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No. of Recommendations: 1
Thank you to Gene and Dave for all your comments. Altho the first reply was not to my liking, Gene made a comment that made sense and Dave gave me some pointers too. Overall am happy with my posts. So thanks you for this Board. Fool on...
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No. of Recommendations: 1
Hey motleybaluga,

My 2 cents:

I think the real issue here is the mindset-- you're looking at things backwards. You don't want to start off by saying "I want X number of shares of [COMPANY] in my portfolio," you want to think "what percentage of my portfolio do I want [COMPANY] to make up," and allocate your dollars proportionately (i.e., $5 of $100 would be a 5% position.)

Fractional shares are a wonderful way to diversify your portfolio in the beginning if you only have a few dollars to invest. You can build that portfolio of 15-25 stocks (possibly alongside some ETFs) without being forced to buy whole shares. Don't think of it as "Oh, I ONLY own $5 of Microsoft," think "Microsoft is 5% of my portfolio." Everywhere from Robinhood to Fidelity has the ability to do fractional, commissionless trading nowadays, so look around! :)

Motley Fool's "The Ascent" has brokerage rankings here, if you're interested; https://www.fool.com/the-ascent/buying-stocks/

Fool on!

CMFJoeFoolery

------------
Ticker Guide: UBER, VRTX
Disclosure: May own some or all of the above-listed companies. Views expressed are my own.
See my holdings at https://boards.fool.com/profile/CMFJoeFoolery/info.aspx
Print the post Back To Top