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Aug 20, 2020, 6 tweets

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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