When investing in stocks, which is better and makes more money?
I’m unsure which is better, to have 100 different stocks and only have 1-10 shares of each, or is it better to have only 5-10 different stocks but have 100+ shares of each one? which is the better way to make more money in the long run?
- Anonymous1 week ago
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- Anonymous2 months ago
Just buy a low fee s&p 500 index fund. Don't overthink things.
- zman492Lv 72 months ago
Of the two ways you listed it would be better to own 5-10 different stocks. With 100 different stocks you cannot follow what is happening with the company adequately without spending an excessive amount of time.
There is, however, a third alternative that is better than either of those two. If you buy a broad based mutual fund or a broad based exchange traded fund, you get the diversity desirable without having to follow each individual stock.
- SteveLv 62 months ago
The quality of the stock depends greatly, too. Youll have to look a bit deeper into the stocks projections and more. In my opinion, penny stocks can be more lucrative than high cap stocks because of the multiples of shares you can buy. They move just like the big boys too. The big difference is the multiples of shares you can buy. When penny stocks are brought up, many investors just think junk. They are wrong because there are many good companies to buy in the $1-$5 range. So,to me, its the larger amount of shares you can buy, but the quality matters greatly.
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- kswck2Lv 72 months ago
Wasn't too long ago that you couldn't buy stocks in less than 100 share lots. But having 1-10 shares in Any stock is pointless with brokerage fees on both ends(buy and sell).
Better to diversify in 10-15 or so stocks, based on your interests. Or if you want less different stocks, maybe invest in just a couple, but those stocks have multiple businesses in multiple industries, like many Blue Chips do.
- USAFisnumber1Lv 72 months ago
Stocks like AMAZON make you money by going up in value. Problem is, until you cash it out you have nothing as they do not pay dividends. What you want to find is a stock that pays some sort of dividend that either reinvests so you get more and more stock or one that pays you some money each year. Amazon by the way is going to crash, it is a big bubble.