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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (1872)7/13/2012 1:47:11 PM
From: bruwin  Respond to of 4719
 
I, personally, often understand better when something is put in an example form ...

Clownbuck, are you recommending the following :-

Share A costs $100 each
Share B costs $20 each
Share C costs $10 each

One buys $1000 of each company's shares. So that gives :-

Share A = $1000/$100 = 10 shares are purchased
Share B = $1000/$20 = 50 shares are purchased
Share C = $1000/$10 = 100 shares are purchased

So if Share A's price increases by $15 we make $15 x 10 = $150
If Share B's price goes up by $2 we make $2 x 50 = $100 etc....