Does it matter how many shares you buy?

Hi,

Probably a silly question, but does it matter how many shares you actually buy in a stock?

Like is it more shares you buy more returns you will get?

I know that you get a bigger dividend if you own more shares though.

Bill Gates owns about 333 million shares of Microsoft. I bought 50. Who do you think gets richer if Microsoft shares increase in value by 10%? We both have return of 10% but it is the absolute amount that matters.

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Ah that makes sense.

The reason why I was asking is that I bought a fractional share of 0.2 in POLY and it’s hardly going up at all. Seems to be taking longer to go to 1p. Maybe I need to wait longer.

Sorry kind of new to this so just want to see how it all works.

Your fractional share is worth £3.30. The price will have to go up 3% before you see 1p profit. You may have to wait a long time.

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Thank you for your money.

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You might be quite happy with the earnings results then.
Extract from EarningsWhispers.com:

Based on the price of 232 USD, and assuming that the earnings are 8 USD per share (2 USD x 4 Quarters) that equates to a P/E ratio of around 29. Quite high, but I suspect that it will increase tomorrow. The current P/E ratio according to T212 is 36.68.

It’s probably cost you more in electric to make this post?
It’s fine to trade with low amounts and you can still gradually make some good returns but I think you need to manage expectations a bit?

If you invested £2 into a business how long do you think it would take to make a sizeable return?

Probably months. It makes sense buying more then.

But the question is would £100 worth of shares go up quicker than £3 ‘s worth?

I’m talking about the performance of the returns here. So would it take longer to go up from £3 to let’s say £6?

Yes, happy with MSFT. It is 3.5% of my portfolio, 4th largest slice after PG, AAPL, JNJ.

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I hope you are joking. Of course it takes the same time to double £3 to £6 as it takes to double £300 to £600.

It is probably not worth thinking about at our investment levels, but you wouldn’t want to buy and hold a large amount of shares, in proportion to the shares in issue.

You would want sufficient liquidity in the market, in order to sell at a reasonable price if you wanted access to the ‘value’ of the shares.

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It’s a matter of invested capital… 10% of 1,000,000.00 is way more than 10% of 100… but both have exactly the same “performance”.

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Ok I’m new so just getting my head around how the system actually works.

I thought it might have been the case more money you put in more money you get back.

Obviously it’s not that so thanks for the clarification.

Try the ‘practice’ account for a while. Its a really good feature on 212.

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Yes. That’s true. Put £300 in a stock that doubles you will get more money back than if you had put in £100, because 600 is more than 200.

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Sorry… I think you’re lacking some basic math concepts, it’s not related to investments at all.

Maybe read some material on Investopedia and books about finance and investments, might save you quite some time and money that you will throw away.

That’s my answer there, thanks.

So as long as the ‘performance’ is the same no matter how you invest then that’s good.

I just don’t have £1000s or even £100s to play with at the moment so starting small.

Don’t chase the fast cash as you’ll find it’s the fastest way to lose your money

The monetary value doesn’t matter, start as small as you can afford.

Just be sure to manage your expectations.

If you put a couple of pounds in, don’t expect to get more than a couple of pounds out.

This isn’t a jackpot machine, you won’t get a £1000 in one pull with £5

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