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"If you can afford to invest $80 in Apple stock, but you cannot afford to invest $565 in Apple stock, you should not be investing $80 in Apple stock. I can poin
by Fomite 13y ago
"If you can afford to invest $80 in Apple stock, but you cannot afford to invest $565 in Apple stock, you should not be investing $80 in Apple stock. I can point you to some very nice index funds, or just, like, I mean, open a checking account."
Back when I was a kid, learning about financial literacy, the stock market, etc. my parents encouraged me to buy shares in a company I liked, whose products I used, etc. It wasn't a shrewd investment strategy, or a balanced portfolio (those would come later), but an introduction to the market, brokerages, etc.
I put in as much as I could, being, you know, 12 or so. It was less than $565.
Post-split, my cost basis on those shares will be a hair under a dollar. I've very glad, at the time, that a share of Apple stock was accessible to people like me.
- JamilD 13y agoI think that statement was more targeted at people who would be at financial risk if that money were lost. Presumably even if you, as a kid, lost that money in the market, you'd still have the support of your parents. However, for a low-income family with barely any money, it would be unwise to put your only savings in a single company instead of something more diversified like an index or mutual fund.
- Fomite 13y agoI agree, as a general statement, and as a principle of investing. I just find the "accessibility doesn't matter" argument...irksome.