02-24-2020, 09:43 PM
Stockguru, buying just one or two shares is fine. If a stock has a PE of 20 and a dividend yield of 3% and is selling for $30, isn't that the same as the stock in 2 years selling for $45 but has the same PE of 20 and a dividend yield of 3%. Yes the stock ran up, but it's still basically the same value.
Real example in my portfolio. I purchased some shares of NSC in 2012 for under $62 per share. It's now $203 per share. It's PE is under 20. It's a good value today. If it wasn't already a top 10 holding, I would be buying more. Unless a stock split happens, I hope I don't ever see it at $62 again.
If I buy 2 shares of something and it skyrockets in price to well above fair value, I won't be buying anymore until it is fairly priced. If someone saved up to buy 30 shares, it might skyrocket before they ever bought it. Better to have 2 shares than 0.
Real example in my portfolio. I purchased some shares of NSC in 2012 for under $62 per share. It's now $203 per share. It's PE is under 20. It's a good value today. If it wasn't already a top 10 holding, I would be buying more. Unless a stock split happens, I hope I don't ever see it at $62 again.
If I buy 2 shares of something and it skyrockets in price to well above fair value, I won't be buying anymore until it is fairly priced. If someone saved up to buy 30 shares, it might skyrocket before they ever bought it. Better to have 2 shares than 0.