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Good Amount of Shares To Purchase

One of my friend was telling me a bit about his stock investing experience. He was actually one of those people who had a lot shares with Nortel way back. Unfortunately, he didn’t sell it and as many people know it dropped like a rock. From my recollection, it was something along the lines of each share being worth $100+ and it then literally plunged to under 50 cents a share.

I asked him on how many shares in a company one should purchase to make it a real worthy investment in his view. In his opinion, he said that in most cases you should generally purchase at least 100 shares to make it worth it. Otherwise, you should find some other way to make better use of your money.

Must be quite a few different opinions about this I’m sure.

one Comments to Good Amount of Shares To Purchase

  • How much you purchase of any security depends on how long you plan to hold it. If it’s short-term speculation / trading, I would buy a minimum of 10% of my trading portfolio for a “value” play, and only 3-5% of my trading portfolio if it was something volatile like a penny stock.

    If it’s for any sort of long-term investment, I usually set a minimum of 1% of my entire portfolio.

    joewatch 10/9/2007 5:14 pm

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