I started reading MF's how to invest.I am curious as to why one needs to buy at least 25 shares to start with.Most brokerages (including mine) don't charge for buying or selling. So what other explanation is possible.
Where did you read this? I can't help but think there is more of a story or advice.
I’m not sure it’s 25 shares as much as shares in 25 different companies. If that’s the case, the reason is diversification. Nobody gets it right 100% of the time. If the only stock you own happens to go belly up, then you’re in a world of trouble. If, on the other hand, 1 or 2 of your portfolio of 25 approximately equally weighted stocks goes belly up, your overall portfolio has a better chance of holding up over time. Regards,-ChuckHome Fool
Frog is right. TMF doesn't care how many shares you hold in a position - it's all about the value of the position. The goal of a of 15-25 positions in your portfolio to start is to achieve a minimal level of diversity so that no single position is so large that it presents a risk to be mitigated. Many Fools build portfolios larger than that initial number of positions.FuskieWho notes if you cannot start out with 15-25 positions initially, then it should be considered an aspirational goal to build towards as you begin your investing journey...-----Premium Home Fool: Ask me a Foolish Question, I'll give you a Foolish Response!Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), Mimecast (MIME), Virgin Galactic (SPCE), Axon Technologies (AXON), 51Jobs (JOBS)Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate adviceDisassociation: The views and statements of this post are Fuskie's and are not intended to represent those of The Motley Fool or any other sane bodyDisclosure: May own shares of some, many or all of the companies mentioned in this post (tinyurl.com/FuskieDisclosure)Fool Code of Conduct: https://www.fool.com/legal/the-motley-fools-rules.aspx#Condu...Invitation: You are invited to interactively watch Motley Fool Live online television: https://livechat.fool.comCall to Action: If you like this or any other post, Rec it. Better yet, reply to it. Even better, start your own thread. This is YOUR TMF Community!
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