Lanceljx
04-20

Psychologically, high-priced stocks can indeed feel intimidating. Here's a closer look at each question:


1. High-Priced Stocks' Influence: High nominal prices can subconsciously steer investors away, even when the percentage risk is equivalent. Many prefer "affordable" stocks, associating them with lower risk.



2. Avoidance of Netflix or Berkshire Hathaway: Some investors avoid these stocks due to their high prices, even if fractional shares or ETFs offer exposure. This often stems from mental biases rather than rational evaluation.



3. Belief in Value vs Price: A high stock price doesn’t necessarily indicate overvaluation. While it’s easy to acknowledge this logically, fear of loss can override rational thinking, especially in volatile markets.



4. $5,000 Allocation: Allocation depends on strategy. For a mix of growth and diversification:


$2,000 in Nvidia: Strong growth potential in AI/tech.


$2,500 in Netflix: Long-term streaming dominance.


$500 in SOXL: High-risk, high-reward exposure to leveraged ETFs.






$1,000 Too Expensive? How Much Does Price Affect Your Decision?
From an investment logic perspective, a single $1,000 stock and ten $100 stocks yield the same return percentage if you invest the same amount of money. But in practice, high-priced stocks do have a psychological impact on everyday investors. So, how much do high-priced stocks influence your investing decisions? A high stock price doesn’t mean the stock is expensive. It’s easy to say — but do you truly believe it? SOXL is $10, Nvidia is $100, Netflix is $1,000. If you had $5,000 — how would you allocate it?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
2