How many stocks should you buy when building your portfolio? | Personal finance


Equity Advisor Returns 2/14/21

Demitri Kalogeropoulos: As you mentioned, there is a wide range of types of wallets out there that you want to have. But a good rule of thumb I had heard is in terms of transaction costs, you want to keep your fees generally around 2% or less I would say in a purchase. Just to put some numbers on that, for example, if you pay $10 for the purchase, that would put you at around $500 initial investment and you would pay 2% there.

But a lot of brokers, those numbers have come down a lot and it’s not too hard to find brokers that don’t charge anything. I have three accounts, I don’t expect to pay any transaction fees. That’s the only hard number I would walk away from. This can be tricky if you’re making a $100 purchase and paying somewhere in that $10 range for transaction fees. You start with 10% in the hole there, so I would avoid that.

But otherwise, I don’t think there would be a minimum. What you can do I like to make regular purchases once a month or every two months or whatever you can do try to get into this habit and don’t be afraid to make a small initial purchase and d buy a stock over time.

I know a stock adviser and other places have talked about buying in thirds, I like to do it myself by making an initial purchase and then it can be small, and watch this business for about a quarter and then maybe buy again. These are just a few good strategies, but there is still a long way to go.


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