When purchasing stocks, how many shares should I set a goal for?

Question

I currently purchase stocks from several companies through sharebuilder.com-Ebay, Wal Mart, Home Depot, NASDAQ 100. I have the payroll department at my job put the money into my account through direct deposit. I like using sharebuilder because it helps me build my portfolio one share at a time. I have a goal of getting at least 100 shares in each of these stocks, provided that these companies continue to prosper. Should I aim for a higher number of shares such as several hundred or a thousand? I am looking in the long term of 10-20 years. I am not looking into aggressive stock purchasing and selling, for example a day-trader-one who sells and buys constantly.

Answer 1

No reason to stop at a certain number,,,just be sure to diversify into several different type markets or segments and just keep investing. Since you're in it for the long haul,don't worry about the ups and downs of the daily market fluctuations. When it goes down, you're buying cheaper which makes you more money in the end. Goodluck.

Answer 2

Basing your portfolio on number of shares is beyond stupid. Your objective function needs to be wealth maximization, not number of share maximization. The latter is accomplished by putting all of your money in the cheapest stock that you can find.

A proper asset allocation strategy has to be based on value because your risk/return and therefore expected wealth is affected by the covariation of the value of your holdings, not some arbitrary variable such as number of shares

You also need to understand that the number of shares that a firm has- and therefore the value of each share- is completely arbitrary. Firms are free to split and reverse split at their whims. In addition

You desperately need to talk to a financial planner. Schedule an appointment yesterday, if possible. If you are not willing to do this, then you would do yourself a tremendous favor by investing in an ETF of an open-end mutual fund that tracks a braod index such as the S&P 500.

Answer 3

#a million; Asset Allocation is relatively important for long term retirement making an investment. you'll be certain that 25% of your investments are worldwide shares, 40% could nicely be great Cap shares etc...... (possibilities are no longer neccessarily what you may desire to do). All stable books on retirement making an investment will conceal this. #2; continually do "like" greenback quantities vs. an equivalent volume of shares. Then your exposure would be extra or less a similar. #3; yet otherwise of doing it relatively is "place Sizing". this form you may first be certain your maximine loss consistent with each and each inventory. then you definitely discover the suitable place for a "end" order. Then regulate your proportion length consistent with those numbers. this may be a extra proffessional way handling your danger.

Answer 4

it's not the number of shares that matter, it's how you much you're willing to invest in each company, and how safe/risky you want those investments to be... don't take this the wrong way but you really seem like a novice in this and this is just too important a matter to be willy nilly about.... you should at least consult a professional and go from there...

Answer 5

Believe me getting 100 share in each stocks is very good,aiming for higher numbers as hundred and thousand can be risky,winning a good amount is pleasing,but losing a huge about can mess up ur work,believe me!!
But if ur good at it and know what ur doing than go for it!

Answer 6

Wal mart is good, but get rid of home depot. They have been losing money. Buy Mcdonalds (MCD), but dont take my word for it do some research, also Best Buy (BBY) is good.

Answer 7

100 is OK when you get there increase the number(not the number of stocks just the number of shares)