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Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out. Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.

I'd like to think that being young and having 401K, Roth IRA, and savings puts me ahead of the game, but I feel like a failure when all I can buy is a few shares of something. Isn't this the way EVERYONE starts, though? (Trust fund babies aside!)

I feel bad when I save $2K for my Roth (which really does take me all year), and then buy "8 shares" or "12 shares" or "16 shares" of something. Once when I went into my broker's office to fill out papers, I heard a guy trading "3,000 shares" of a big company. Whoa!

I guess I will just have to wait decades to add more and hope they will split and split and split. Not to mention watching the dividends pile up. And that's another thing. I am proud when I have just an extra $50/mo. to send into my KO DRP, but when I realize that $50 purchases LESS THAN 1 SHARE, I get discouraged again.

I just wonder what an "average" portfolio looks like. How long will it take to have "hundreds" of this and "thousands" of that if I buy and hold? I know this is not really answerable, but... your thoughts?

--AliFool
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AliFool wrote:

Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out. Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.


Ali... The way I look at it is this:

10 shares of Microsoft * 100/share = 1000
If it goes up 20% for the year it is worth 1200.

1000 shares of another stock * 1/share = 1000
If it goes up 20% for the year it is worth 1200.

Both have the same value!!!

The number of shares does not mean much. The amount you invest and the return you get will be the important factors over the years.

Keep on fooling...

Zeb and Hildegarde
(Right next door to the Ziffles)
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Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that
matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out.
Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.

I'd like to think that being young and having 401K, Roth IRA, and savings puts me ahead of the
game, but I feel like a failure when all I can buy is a few shares of something. Isn't this the way
EVERYONE starts, though? (Trust fund babies aside!)


I myself felt kind of silly when I scraped together the money for my first contribution to my Roth IRA last December. Got 4 shares, 4 shares, and 5 shares of MSFT, INTC, and LU. Woo-hoo!

But I quickly got to feeling like zebfool. Someday I may be able to trade in even lots, but that won't be for a long, LONG time. And I do think we are a leg up just for even starting our IRAs.

Kind of on topic: have any of you had any trouble with delays from trading odd-lots? When I look at trades going through, I only see multiples of 100. What actually happens when we little people make our single digit trades? I bought into a low-volume small cap the other day, and it took over a half an hour to go through. Just curious...

--steve
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AliFool wrote:
Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out. Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.

I'd like to think that being young and having 401K, Roth IRA, and savings puts me ahead of the game, but I feel like a failure when all I can buy is a few shares of something. Isn't this the way EVERYONE starts, though? (Trust fund babies aside!)


Then koch wrote:
I myself felt kind of silly when I scraped together the money for my first contribution to my Roth IRA last December. Got 4 shares, 4 shares, and 5 shares of MSFT, INTC, and LU. Woo-hoo!

But I quickly got to feeling like zebfool. Someday I may be able to trade in even lots, but that won't be for a long, LONG time. And I do think we are a leg up just for even starting our IRAs.

Kind of on topic: have any of you had any trouble with delays from trading odd-lots? When I look at trades going through, I only see multiples of 100. What actually happens when we little people make our single digit trades? I bought into a low-volume small cap the other day, and it took over a half an hour to go through. Just curious...


Take it from someone who has probably been at it longer than either of you - patience is worth it. Zebfool was right - the share price itself matters little, although it can be annoying when your $1,000 buys four shares of XYZ at 198 1/32 (with an $8 commission) and leaves you with $199.875 left. You want to buy that d@mn fifth share!

As for odd lots, even though in my particular case $1,000 trades don't happen any more (don't worry, you'll get there too!), I still buy weird numbers of shares. Last June I bought 201 shares of BBY, because the Workshop strategy I was using said that was the number to buy. I've never seen a delay for an odd-lot trade; computers have taken away the difficulties involved and now they go through just as quickly as any other trade. In the case of koch's low-volume small-cap, it was probably the low volume that caused the delay; there just wasn't a seller available immediately.

I started the same way you guys did. Don't let the seemingly small numbers bother you. It's yours, just as much as Warren Buffet's billions are his.

Piz
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Keep at it with your $2000/year. In 1985, I bought 33 shares of my company's stock for about $400. It has risen and split so that today I have 528 shares and it is worth about $18,000!!!

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Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out. Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.

Ali,

As Zebfool said, It's not the number of shares, it the growth that matters. Now that the discount brokers have ended the even-lot strangle hold and commissions are in the $8-$30 range rather than $100 or more, buy what you can afford, sit back and watch it grow.

I'm waiting for the day I can by 4 or 5 shates... of BRKA (at $65,000 each.)

Bob
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AliFool writes:

<<Does it irk you that $1000 doesn't even buy *10* shares of MSFT, or *3* shares of YHOO, for that matter? $1K is a lot of money... well, maybe more so for those of us who are just starting out. Maybe it would be better to think in these terms: $1000 would buy 20 shares of G at $50.

I'd like to think that being young and having 401K, Roth IRA, and savings puts me ahead of the game, but I feel like a failure when all I can buy is a few shares of something. Isn't this the way EVERYONE starts, though? (Trust fund babies aside!)

I feel bad when I save $2K for my Roth (which really does take me all year), and then buy "8 shares" or "12 shares" or "16 shares" of something. Once when I went into my broker's office to fill out papers, I heard a guy trading "3,000 shares" of a big company. Whoa!

I guess I will just have to wait decades to add more and hope they will split and split and split. Not to mention watching the dividends pile up. And that's another thing. I am proud when I have just an extra $50/mo. to send into my KO DRP, but when I realize that $50 purchases LESS THAN 1 SHARE, I get discouraged again.

I just wonder what an "average" portfolio looks like. How long will it take to have "hundreds" of this and "thousands" of that if I buy and hold? I know this is not really answerable, but... your thoughts?>>


As so many others have pointed out, it's all relative. Hang in there because your turn for buying in lots will come. All that counts is for you to stay with the program. And BTW… While I can afford to, I seldom buy in round lots. Indeed, the only time I do is with my r-e-a-l-l-y long term holdings (i.e., those I doubt I'll ever sell in my lifetime).

Regards….Pixy
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Thanks, Pixy, and others, for your insights. I guess I should mention that today $1000 WOULD buy (more than) 3 shares of Yahoo. : ) Things change... and money (hopefully!) grows over time. Perhaps patience IS a virtue. I'll let you know in 40 years!

Ciao....

--AliFool
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