Low-priced stocks really catch investors’ eyes. But the reality is that it doesn’t matter what a stock’s price is — it only matters how much it goes up or down.
Consider that a $1,000 investment is the same whether you buy one share of a $1,000 stock or 1,000 shares of a $1 stock. If these investments go up 1%, you make the same net profit of $10 on your total investment.
Consider that a week ago on April 12, Amazon (NASDAQ:AMZN) traded in a range of $185.61 to $192.26 — a “big” window of $6.65 in difference. But at the end of the day, the stock closed up just 1.4%. Not a lot of fireworks there.
What I’m trying to get across is that you shouldn’t fool yourself into thinking a high-priced stock is out of reach. Yes, trading in odd lots of two or three shares might seem silly — but if you use a limit order to protect your entry price, there’s no reason why you can’t grab some of these shares.
Of course, you have to make sure you’re buying a stock that’s sound no matter what the price. And of the highest-priced stocks out there, these five $100-plus investments are worth a look — even if you only buy a handful of shares: