Don't. If you can't afford to buy blocks of shares (meaning thousands) the stock market isn't your game.
This guy gets it. Research Vanguard.Exactly this op. Individual stocks ain't the game until you're already balling and have some to essentially gamble with, or enough to truly make an investment in the thousands on a single safeish stock like Apple.
Index fund is where it's at right now
KickstarterWhich app?![]()
Don't. If you can't afford to buy blocks of shares (meaning thousands) the stock market isn't your game.
No one said you couldn't buy one. Please don't post here without educating yourself first. You're spreading misinformation.You don't need to buy thousands. You can literally buy 1 share if you want. Theres nothing wrong with purchasing individual stock other than its more risky than a fund. The key is to replicate what a fund does; which is to buy stock in multiple companies so the portfolio is DIVERSIFIED. Diversification is the ultimate hedge against RISK. In the market, you are not managing wealth. You are managing RISK. Always remember that. @OP
No one said you couldn't buy one. Please don't post here without educating yourself first. You're spreading misinformation.
I did read the thread title. However, just because that's what he's asking for doesn't mean that's what's best for him. Buying stocks in such small numbers where you're unlikely to see any appreciable financial gain is a poor allocation of resources.
Read the thread title. OP wants equity positions in specific companies.
What misinformation am I spreading, exactly?
I did read the thread title. However, just because that's what he's asking for doesn't mean that's what's best for him. Buying stocks in such small numbers where you're unlikely to see any appreciable financial gain is a poor allocation of resources.
And for the record, those are blue-chip stocks. Brokerages love when simps buys these kinds of stocks. They collect fees to keep the office cafeteria catered off the backs of clowns who want to be able to stand around the water cooler and say they have Tesla, Apple, Google stock.
Very few people have the capital to buy enough stock to retire on. Those who do buy blocks of shares. You walked into this thread writing posts laced with vitriol. I mean breh your second bullet point is talking about a 50M order. That is definitely enough to warrant notice. Do you know how few individuals have 50M liquid to sit around and play the market with.a) You don't know his goals/objectives so you don't know if he has a specific reason for wanting McDonalds and Starbucks or whats "best for him". The better question to ask him is what is his risk tolerance, how much is he looking to invest, and how active he wants to be in his investment game.
b) Buying stocks in such small numbers is absolutely irrelevant. You are looking for % gains. Just because you can't move the market with a $50mil order doesn't mean you won't find great appreciation in your principal. Your only worry here is that the transaction fee doesn't eat up your profit.
Ex: You buy $100 worth of stock in company XYZ. Your broker charges $6 per trade (thats $6 to buy and $6 to sell so total of $12 in fees). Those fees alone mean you need 12% gain just to break even ($100 -> $112). To mitigate that you need to have a higher than 12% gain or you need to invest more money so the fees become minimized. Same scenario but say you invested $1000. Its still only $6 per trade so your breakeven is $1012 which means the stock only has to go up 1.2% for you to breakeven rather than 12%.
If the stock had gone up 5% during your trade, the first scenario would mean you ended up with $105 worth of stock. Minus $12 in fees leaves you at $93 which is a 7% loss. In the second scenario, you would end up with $1050 minus $12 in fees would leave you with $1038 or a $38 profit (3.8% return on investment)
c) The only "poor allocation" is putting all his eggs in one or two baskets. He has to diversify and buy a few companies in diverse industries. Diversification lowers risk which as I said earlier is your #1 objective. An index fund is just a diversified basket of stocks in a specific sector. Index investing is a solid bet, especially for the long term, and typically has lower risk than individual stock. However, lower risk means lower reward. So again, you have to find out what his objective is and see what his risk tolerance is and then decide whether he wants to throw it in an index fund and forget about it or target potentially hot stocks that could return higher profit rates.
d) Only your trading company gets paid when you buy shares in MCD or SBUX. E-Trade/robinhood/TD etc get a few bucks per trade. Theres no fat cat on WS jumping for joy over your $6 fee to buy 50 shares of MCD.
e) If you bought Tesla, Apple, or Google stock a few months/years back you'd be retired on the beach somewhere instead of hanging around a water cooler. All three stocks greatly outperformed the market, especially your beloved index funds. Those stocks in particular have been some of the best performing stocks over the past decade. I turned 6k into 30k in Apple stock a few years back during college. If i put my money in an index fund I would have turned that 6k into 8k.
Now, stop with your smart dumb shyt. I wrote all that out so others in this thread can learn. You have a very elementary understanding of the market so take your own advice before you call out "misinformation".
a) You don't know his goals/objectives so you don't know if he has a specific reason for wanting McDonalds and Starbucks or whats "best for him". The better question to ask him is what is his risk tolerance, how much is he looking to invest, and how active he wants to be in his investment game.
b) Buying stocks in such small numbers is absolutely irrelevant. You are looking for % gains. Just because you can't move the market with a $50mil order doesn't mean you won't find great appreciation in your principal. Your only worry here is that the transaction fee doesn't eat up your profit.
Ex: You buy $100 worth of stock in company XYZ. Your broker charges $6 per trade (thats $6 to buy and $6 to sell so total of $12 in fees). Those fees alone mean you need 12% gain just to break even ($100 -> $112). To mitigate that you need to have a higher than 12% gain or you need to invest more money so the fees become minimized. Same scenario but say you invested $1000. Its still only $6 per trade so your breakeven is $1012 which means the stock only has to go up 1.2% for you to breakeven rather than 12%.
If the stock had gone up 5% during your trade, the first scenario would mean you ended up with $105 worth of stock. Minus $12 in fees leaves you at $93 which is a 7% loss. In the second scenario, you would end up with $1050 minus $12 in fees would leave you with $1038 or a $38 profit (3.8% return on investment)
c) The only "poor allocation" is putting all his eggs in one or two baskets. He has to diversify and buy a few companies in diverse industries. Diversification lowers risk which as I said earlier is your #1 objective. An index fund is just a diversified basket of stocks in a specific sector. Index investing is a solid bet, especially for the long term, and typically has lower risk than individual stock. However, lower risk means lower reward. So again, you have to find out what his objective is and see what his risk tolerance is and then decide whether he wants to throw it in an index fund and forget about it or target potentially hot stocks that could return higher profit rates.
d) Only your trading company gets paid when you buy shares in MCD or SBUX. E-Trade/robinhood/TD etc get a few bucks per trade. Theres no fat cat on WS jumping for joy over your $6 fee to buy 50 shares of MCD.
e) If you bought Tesla, Apple, or Google stock a few months/years back you'd be retired on the beach somewhere instead of hanging around a water cooler. All three stocks greatly outperformed the market, especially your beloved index funds. Those stocks in particular have been some of the best performing stocks over the past decade. I turned 6k into 30k in Apple stock a few years back during college. If i put my money in an index fund I would have turned that 6k into 8k.
Now, stop with your smart dumb shyt. I wrote all that out so others in this thread can learn. You have a very elementary understanding of the market so take your own advice before you call out "misinformation".
Don't be impressed. It's just blocks of text.
Very few people have the capital to buy enough stock to retire on. Those who do buy blocks of shares. You walked into this thread writing posts laced with vitriol. I mean breh your second bullet point is talking about a 50M order. That is definitely enough to warrant notice. Do you know how few individuals have 50M liquid to sit around and play the market with.
You'll never be a liquid millionaire with the nonsense you're spouting right now. And congrats on your 30K my man. My company nets that, accounting for overhead, in a day. Good day sir!