When it comes to investing, many of us have an instinctive reaction to stock prices. A $1000 stock feels expensive, while a $10 stock feels cheap. But in reality, the price per share is just a number — what truly matters is the company’s value, growth potential, and percentage returns.

Let’s break this down:

If a $1000 stock rises by 10%, it makes you $100.

If a $100 stock rises by 10%, it makes you $10.

But if you bought 10 shares of the $100 stock, you’d also have a $100 gain — same as buying one share of the $1000 stock.

Same capital, same return.

So why do people shy away from higher-priced stocks?

It’s psychology. Lower-priced stocks feel more accessible and give a false sense of “more upside.” But a $10 stock can be a dying business, and a $1000 stock can be an industry leader with explosive earnings growth.

Take companies like Nvidia, Berkshire Hathaway, or Tesla — they've traded at high prices, yet long-term investors saw strong returns regardless of the stock price. Meanwhile, some low-priced stocks never recover.

What really matters?

Earnings growth

Profit margins

Competitive advantage

Balance sheet strength

Future potential

In fact, many professional investors ignore the stock price completely. They focus on valuation metrics like P/E, P/S, ROE, and free cash flow.

Of course, fractional shares now allow retail investors to buy into even the highest-priced names without needing to commit large amounts. If you like the business, you don’t have to wait for a stock split — you can still invest.

At the end of the day, price doesn’t equal value.

A $1000 stock isn’t “expensive” if it keeps growing.

A $10 stock isn’t “cheap” if the company is going bankrupt.

So the next time you’re deciding between a few high-priced stocks and a basket of lower-priced ones, ask yourself:

“Am I buying a strong business or just chasing a number?”

Because in the long game of investing, it’s not the price tag — it’s the percentage returns that make the difference.