Q: What are fractional shares and why do they matter?
A: Fractional shares lets you buy shares of stock in small increments
For example, you could buy $1 worth of Apple stock instead of saving up $462 for 1 full share
Why should you care?
[THREAD]
There are 2 main reasons why companies DON'T split shares
1. Some companies believe a high share price brings a level of prestige
2. Warren Buffett famously said he'll never split Berkshire A-Class stock bc he wants to attract only "like minded" investors
That means - not you
Today, Buffett's company, Berkshire Hathaway is $310,800 per share
Normally, you'd have to save up $310k to buy 1 full share through your broker
But with fractional shares, you can buy as little as $1 worth, or .000003 shares
Why should you care?
Bc these are some of the best long term investments that you're missing out on
$1,000 invested in in 1965 would be worth $26 Million today, compared to $200,000 invested in the S&P 500
Some Other High Share Prices:
Amazon Inc $3,260
Seaboard Corporation $2,856
Booking Holdings Inc. $1,767
Alphabet Inc. $1,547
Chipotle $1,219
Now, I'm not saying to go buy these companies tomorrow...
but know that you have the opportunity to invest in stocks that most people have never had access to before
Ask your brokerage if they offer fractional shares
If not, try Robinhood
#affiliate
bit.ly/34dTCOs
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