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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.
Generally, retail investors tend to avoid high-priced stocks like Netflix. But in reality, Netflix has been incredibly stable in recent years, consistently beating earnings expectations quarter after quarter. Even in this year’s overall market downturn, Netflix still holds a 9% gain.
Nvidia, after its stock split, attracted many retail buyers. But don’t forget — before the split, Nvidia also traded at $1,000 per share.
how much do high-priced stocks influence your investing decisions?
SOXL is $10, Nvidia is $100, Netflix is $1,000. If you had $5,000 — how would you allocate it?
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