Ask a Fool: Is It Better to Buy One High-Priced Stock or Multiple Lower-Priced Stocks?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader who asks: "If you have about $500 to invest, is it better to buy one share of a $500 stock like Apple (NASDAQ: AAPL  ) or 30 shares of a $17 stock like Ford (NYSE: F  ) ?

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Comments from our Foolish Readers

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  • Report this Comment On November 19, 2013, at 7:50 PM, neamakri wrote:

    good question. My opinion; in either case you are purchasing $500 of a company. So the correct answer is to pick the company that you will be proud to own.

  • Report this Comment On December 08, 2013, at 2:16 PM, RussMon wrote:

    It's an extremely good quesion. The answer raised is also good but also lame at the same time. Of course the company behind it should be good.

    How ever, let's say both are undervalued and both pay a dividend. I would say take the 30 shares, because you can then partially close your position instead of the entire thing at once.

  • Report this Comment On December 08, 2013, at 8:33 PM, FKash wrote:

    I think I would be among a select fewer investors getting the single share. The less expensive stock might be purchased by investors who panic more easily from bad news. But i don't know if that is true. It may be that with only $500 toi spend you would be more likely to buy the less expensive stock thinking that you have

    29 tickets plus some left over for a cup of coffee.

  • Report this Comment On December 12, 2013, at 2:05 PM, joeorsi wrote:

    This really shouldn't even be a factor that you consider.

  • Report this Comment On December 12, 2013, at 2:12 PM, MRCulkin wrote:

    It doesn't matter. You measure stock success on percentages, not $. That's why I used to chuckle back when stock splitting was all the rage.

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