$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?

avatarMojoStellar
05-05
$1000 too expensive? How much does stock price affect my decisions?  Whether $1000 feels "too expensive" depends on your mindset and the value you expect in return. When it comes to stock prices, here's a classic Warren Buffett quote that offers clarity: "Price is what you pay. Value is what you get." — Warren Buffett This means a stock priced at $1000 may still be a bargain if the underlying value is much higher. Don’t be swayed by the sticker price—focus on what you’re getting in return. Three Takeaways: Why $1000 Can Bring Prosperity • Ownership in a Powerful Asset $1000 invested wisely—especially in a high-quality stock or ETF—grants you partial ownership in a business that may generate ongoing profits and dividends, potentially compounding over time. • Leverage the Powe
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avatardragonfyre
04-21
higher priced shares are harder to obtain and the ability to add a few or sell a few shares is also reduced, unless they support fractional shares of course.  However, price doesnt necessarily reflect company value or future profitability.  Nonetheless, a 1k share is quite intimidating without really good fundamentals, depending on how much money one has to throw around. 😳
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avatarorsiri
04-21

Sticker Shock: Why That $1,000 Share Isn’t Really Expensive

The interplay between a stock's price and an investor's decision-making process is a fascinating one, and it's precisely what we shall examine here. A key aspect of this examination, as you rightly point out, lies in the often-overlooked mathematical equivalence of owning a single high-priced share versus multiple lower-priced shares, given the same capital outlay. Logically, the percentage return should be identical. However, the human element, the psychological tug, is undeniable in the realm of investing. For the everyday investor, that four-figure price tag on a stock like Netflix can indeed feel substantial, perhaps even prohibitive. It creates a perception of inaccessibility, a feeling that one is buying a significant, and therefore potentially riskier, chunk of a company. Conversely
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Sticker Shock: Why That $1,000 Share Isn’t Really Expensive
avatarStripledOne
04-20
For a small portfolio , I would prefer to spread across different stocks rather than be concentrated on 1 - 2 stocks due to its high price
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avatarCIG
04-20
The disadvantage of a 1000 stock is I can't sell partial if it never allows fractional share, whereas 10x100 stock can have the options to sell 3 or 5 shares flexibly.
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avatarguang8
04-20
Stock price of 1,000 directly affects my ability to execute my options strategy. Options are sold in lots of 100 shares, therefore I cannot buy just 1 share. Also, the option price is correlated to the stock price. Therefore a high stock price means I cannot sell a put without taking excessive risk. If I can only afford say 50 shares (due to the high stock price) then my liquidation risk increases.
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avatarLanceljx
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 st
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avatarLanceljx
04-20
High-priced stocks can feel intimidating due to psychological biases. A $50 drop on a $1,000 stock may feel worse than $5 on a $100 stock, even though the percentage loss is the same. 1. Influence: High nominal prices may deter some investors, despite the percentage risk being identical to lower-priced stocks. 2. Avoidance: Many avoid stocks like Netflix or Berkshire Hathaway due to high prices, even though fractional shares or ETFs provide access. 3. Value vs Price: While a high price doesn’t mean a stock is expensive, fear of larger downside risks can outweigh rational thinking. 4. $5,000 Allocation: A balanced strategy might include: $2,000 in Nvidia: Strong growth potential. $2,500 in Netflix: Long-term streaming leader. $500 in SOXL: High-risk, high-reward exposure.
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avatarDiAngel
04-19
I would avoid buying stock at $1000 as the probability of having a good return is lower than those at $10 or $100. Anyway, that’s my thought. [LOL][Happy][Smile][Chuckle][Heart]
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avatarchai88
04-19
Time to hoot !!!! Go for it !
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avatarkoolgal
04-19

How much does USD 1000 stock affect my decision?

🌟🌟🌟Warren Buffett once said "Price is what you pay, value is what you get".  This to me encapsulates a core principle of value investing and serves as a poignant reminder to look beyond the share price of a stock. What is the difference between Price and Value? Price is the amount of money we pay when we buy something.  In the context of stocks, it is the market quote at which a share of a company is bought or sold.  The price can be influenced by market sentiment, short term news and speculative behaviour. Value refers to the intrinsic worth of an asset.  It is determined by Fundamentals such as a company's earnings, growth prospects, assets and overall financial health.  While price fluctuates frequently, the underlying value is more stable and represents what an
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How much does USD 1000 stock affect my decision?
avatar1PC
04-19
I used to avoid High Price stock but now, it's a potential watchlist stock Instead [Chuckle] High Price Stock do have it's strength to "Run uphills" faster than others too [Happy] @Jes86188 @Shyon @Barcode @JC888 @koolgal
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avatarPatmos
04-18
Price is just a number, valuation of the stock counts 
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avatarBarcode
04-18
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avatarECLC
04-18
Mostly tends to avoid high-priced stocks. But sometimes, some stocks may be worth the premium to buy.
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avatarjislandfund
04-18
I'd be inclined towards to lower priced stocks as any gains are a higher % than higher priced ones. But with hindsight diversifying across the board maybe the way to go. ⭐🐯 
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avatarAqa
04-18
It is true that generally retail investors tend to avoid high-priced stocks. But from theoretical perspective, a high stock price per share does not mean it is ‘expensive’. It is the sum of money allocated per trade that matters. Buying 1 share of a $1,000 stock that goes up 10% earns $100. Buying 10 shares of a $100 stock with the same 10% gain also earns $100. Thanks @Tiger_comments @icycrystal @TigerGPT @1PC
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avatarKKLEE
04-18
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 e
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avatarShyon
04-18
While I know a stock’s price doesn’t reflect its true value, high-priced stocks like Netflix can still feel intimidating. It’s psychological—seeing a $1,000 stock triggers thoughts like “What if it drops?” even though percentage moves are what matter. Ultimately, we’re buying future market cap growth, not just the number of shares. If I had $5,000 to split among SOXL, Nvidia, and Netflix, I’d lean most into SOXL $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ due to my DCA strategy and belief in semiconductors. Nvidia would come next—strong fundamentals and long-term upside. Netflix, while consistent, would get a smaller slice—not because of price, but because I see more near-term potential elsewhere. In the end, I focus on business fundamen
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avatarhighhand
04-18
price shouldn't affect unless it's above intrinsic value. even if it's a thousand dollar stock, but it's undervalued, we should just buy. look at $AutoZone(AZO)$ $Booking Holdings(BKNG)$ and $MercadoLibre(MELI)$ ... all very expensive stocks but keep going up.
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