First things first: The nominal share price of an investment is meaningless. Whether you buy one share for $1,000 or 1,000 shares for $1, your investment is the same — and furthermore, as the stock rises and falls on a percentage basis your returns are the same.
At the end of the day, share price does not matter. That’s just simple math.
But for some reason, some investors continue to insist on only buying “cheap” stocks based on the per share price. So I regularly offer up some picks in the $10 range for this kind of trader.
Remember, a stock can be valued fairly at over $500 a share or trade for a premium even if its share price is $1. And frankly, if you limit yourself to a universe of $10-or-under stocks, you are preventing investment in some of the best stocks on Wall Street — because typically, the best blue chips or high-growth tech stocks do not trade for a dollar or two a share.
All that said, if cheap stocks are your thing, then look at these five picks: