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0 pointsnodesocket8y ago0 comments

The amount of shares and value is all relative and has no bearing on "the faith or future you see in the company". Somebody investing $1,000 in Apple who only has $1,000 to invest is the same as somebody investing 10M who has 10M to invest.

I believe the real question you're looking for, is what percent of your portfolio is each of your companies.

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philsnow8y ago

> Somebody investing $1,000 in Apple who only has $1,000 to invest is the same as somebody investing 10M who has 10M to invest.

It's really not. You can't really meaningfully diversify with a portfolio of $1k, but you sure can with $10M.

It makes more sense for the $1k investor to pick one stock they feel good about it and hope to get 10-20% or more return on that, rather than for that $1k investor to try to find ten funds / stocks that balance his exposure.

For the $10M investor, it's financially irresponsible to allocate your entire portfolio to tech. _It very probably will pay off very well_, but there's a significant chance you'll lose several million.

pen2l8y ago

> It makes more sense for the $1k investor to pick one stock they feel good about it and hope to get 10-20% or more return on that

If you're going to invest $1k, does it even make sense to do it at all even for that 10-20%? I recently for the first time bought some stocks (about 5k), and I don't like that I'm refreshing my etrade account all the time. In the end it would have been better I feel to spend it on something else. If you're gonna invest, I say invest in the liberal 5-digits, if you don't have means to do that, don't invest in stocks. (that's the reason why I asked the original question... I'm curious if others who are earning "engineering salaries" are investing in stocks only by small amounts or going all in)

skylark8y ago

It doesn't have to be so black and white - you don't need to invest small or go all in. I setup an automatic transfer which happens the day after I get my paycheck. Over time it's added up to be quite a lot of money.

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