{"id":6604,"date":"2019-03-13T06:49:07","date_gmt":"2019-03-13T06:49:07","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?p=6604"},"modified":"2021-10-12T10:57:14","modified_gmt":"2021-10-12T09:57:14","slug":"one-share-stock-worth-buying","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/03\/one-share-stock-worth-buying\/","title":{"rendered":"One share of stock – is it worth buying"},"content":{"rendered":"

3 min read<\/span><\/i><\/p>\n

One share of stock – Is there any benefit to buying one? Is it better to have a bunch of shares or not? <\/span>A dozen? 100? 150? 200? The answer is typically less than the number of fingers on the hand. <\/span>A ruling principle of stock investing<\/a> is to spread your portfolio throughout several companies.
\n<\/span>But, what if you don’t? What if something bad happens to your single investment? You will have practically no way to cushion the disaster. <\/span>The misconception in managing a portfolio is that should contain numerous stocks.<\/p>\n

Why is this opinion a mistake?<\/span><\/p>\n

Yes, your exposure to risk in individual stocks is smaller. But, at the same time, you are also reducing the chance to make large profits in the big winners. <\/span>There is a simple reason behind this: You won’t have enough shares to enjoy the gains. <\/span>But there is a disadvantage of an over-diversified portfolio is that it takes a lot of commitment to watch over many companies, follow their rise, reports, and other progress. <\/span><\/p>\n

If you have a smaller number of shares, it’s easier to follow the companies you own.<\/span><\/p>\n

Yes, truth is, investing all of your money<\/a> in the stock of only one company<\/a> is very risky. You can suddenly lose most of your money. But it also has the potential for huge returns. <\/span>There are numberless stories about investors getting into a company that went onto great things. <\/span><\/p>\n

For example, if someone was able to buy Apple in its early days, such has made a lot of money nowadays. Moreover, one share of stock was good enough.\u00a0<\/span><\/p>\n

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