Stock price - Go for higher or lower stocks?

Still getting my feet wet with shares but curious to know how others approach the dollar value of an investment.

Do you focus on a set amount eg $5000 and then just choose a stock regardless of the unit price, or do you focus on cheaper stocks (around the $2 mark) because it feels like you can gain more if/when the price goes up (because you were able to buy more) or do you invest in the higher priced FPH, RYM etc - where you have to spend more to get the same qty of stock

I select the stock - then decide how much to invest. The unit price doesn't influence the process - for me - although it may determine the size of the parcel for higher priced stocks.

yeh that makes sense. i guess its just the psychology of thinking you have more to lose but i guess if youre investing the same dollar amount overall it makes no difference. i suppose thats part of investing in shares is knowing the tricks your mind is playing on you

I try to look at sectors.Some have headwinds, while others have tailwinds.The up and down value of the NZ$ affects stocks.High $ is good for importers,low $ is good for exporters.
Recently I decided I had too little in the retirement sector.I already think RYM and SUM have the best prospects.On further thinking I decided to add to our SUM holding.eps growth compared to PE ratio were the deciders. I find it is always best to add to stocks I already own.

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Originally Posted by nocomment

yeh that makes sense. i guess its just the psychology of thinking you have more to lose but i guess if youre investing the same dollar amount overall it makes no difference. i suppose thats part of investing in shares is knowing the tricks your mind is playing on you

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Very true. Just remember that Berkshire Hathaway shares trade in the USA around $250,000 each.

:cool:

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Originally Posted by percy

I try to look at sectors.Some have headwinds, while others have tailwinds.The up and down value of the NZ$ affects stocks.High $ is good for importers,low $ is good for exporters.
Recently I decided I had too little in the retirement sector.I already think RYM and SUM have the best prospects.On further thinking I decided to add to our SUM holding.eps growth compared to PE ratio were the deciders. I find it is always best to add to stocks I already own.

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what about OCA? i see the staggers have been out of luck but it seems pretty solid