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To: Rand S. Feldman who wrote (1955)12/29/1998 8:00:00 PM
From: Tony Pache  Read Replies (2) | Respond to of 2346
 
Feedback to Rand...

Personally, I wouldn't bother buying less than a 100 shares of a stock. If you happen to pick the right stock and it goes up a bunch, what do you have to show for it if you only have 20 shares???!

If I only had 20K to invest, I'd put half in an index fund (VIGRX) for example. Use the remainder on 2-4 stocks as you see fit, keeping in mind your risk tolerance and time frame.

Good luck!



To: Rand S. Feldman who wrote (1955)12/30/1998 8:21:00 PM
From: DWB  Respond to of 2346
 
Rand,

From my perspective, I would diversify that 20K into a small group of different stocks (anywhere from 5-10), and buy dollar amounts, not round lots. As has been mentioned previously... if you invest $2K in a stock and it goes up 50%, you will have $3K at the end, no matter how many shares you held during the time. Therefore, with today's low commission brokerages, it makes sense to pay less attention to how many shares you have, as how much they've appreciated. Everything is relative, and if you have $20K to invest, then that's better than $10K...

DWB