Many trading platforms, and quite recently ETrade, is now allowing the purchase of fractional shares. Obviously, the same rules of due diligence apply, but the door is now open to investments that were not possible for some before this change.
Here is an extreme example: Berkshire Hathaway stock. Warren Buffett definitely seems like someone who knows what he is doing and this fund has historically performed incredibly well. Interested in a share of this Class A stock? That will run you roughly 815K a single share. YES…you read that correctly. They realize that most people don’t have close to a million dollars laying around to invest in one share so they created their Class B stock…at the low, low price that is trading today at about $542 a share. Still a little steep? I’d say so. That is where fractional shares have allowed normal investors or people starting in investing to be a part of these funds.
Amazon is trading over $200 a share.
Coke is close to $100 a share.
Home Depot is north of $300 a share.
But now you have access. Investing when I was in my 20s would have required me to have a broker, make a call, wire funds, etc. Today it’s all at your fingertips. Start early people….it makes a huge difference!
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