{"id":2251,"date":"2020-11-30T12:00:12","date_gmt":"2020-11-30T17:00:12","guid":{"rendered":"https:\/\/teachingmillionaires.com\/?p=2251"},"modified":"2021-02-23T13:52:30","modified_gmt":"2021-02-23T18:52:30","slug":"should-you-buy-amazon-stock","status":"publish","type":"post","link":"https:\/\/teachingmillionaires.com\/newstag\/should-you-buy-amazon-stock\/","title":{"rendered":"Should You Buy Amazon Stock?"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Should You Buy Amazon Stock RIGHT NOW?\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/Y8KNPexxaJI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Here&#8217;s an overview of how using fractional shares of stock can help you buy portions of large companies such as Amazon AMZN, Apple AAPL, Tesla TSLA, and Google GOOGL &#8211; and how fractional shares can help diversify your investment portfolio.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>What Are Fractional Shares of Stock?<\/strong><\/strong>&nbsp;<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Fractional shares of stock allow you to buy a small portion of an individual stock.&nbsp; For example, if you want to purchase an expensive stock like <a href=\"https:\/\/www.amazon.com\/?tag=pod04-20\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon<\/a>, then normally you need to buy the entire stock.&nbsp; Currently, Amazon is trading for over $3,000 per share.<\/p>\n\n\n\n<p>Unless you have tens of thousands of dollars to invest, then buying one expensive stock like Amazon gets in the way of creating a balanced, diversified portfolio.<\/p>\n\n\n\n<p>Instead, let\u2019s think of fractional shares like buying a slice of pie instead of the whole pie.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"450\" height=\"800\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/M1-Pie.gif\" alt=\"Should You Buy Amazon Stock?\" class=\"wp-image-2253\"\/><figcaption>Should You Buy Amazon Stock?<\/figcaption><\/figure>\n\n\n\n<p>Only have $1,000 to invest?&nbsp; Then, you can buy exactly $1,000 of any stock.&nbsp; This is sometimes called dollar-based investing.&nbsp; It\u2019s helpful for people who like to invest routinely with a set amount of money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Do Fractional Shares Work the Same as Regular Stocks?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Yes, fractional shares work the same way as regular stocks. &nbsp;If the share price goes down, then you&#8217;re going to lose money.&nbsp; However, if there&#8217;s a percentage gain, then you&#8217;re going to gain that same percentage.<\/p>\n\n\n\n<p>Likewise, if the stock pays dividends, then you\u2019re going to be paid a fractional dividend.&nbsp; If you own \u00bd of a share and there&#8217;s a $1 dividend, then you&#8217;re going to get 50 cents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Is Buying Fractional Shares of Stock Right for You?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>The first thing that attracted me to buying fractional shares of stock was access to a wider pool of investment options. &nbsp;You are able to buy any publicly traded company.&nbsp; The amount of money you have to invest no longer restricts the type of stocks available to you for investment.<\/p>\n\n\n\n<p>Picture this \u2026 you open a taxable brokerage account and plan to .&nbsp; Using fractional shares, you are still able to buy the exact same type of portfolio as someone investing thousands of dollars each week.<\/p>\n\n\n\n<p>The next benefit of fractional shares is that you can diversify your portfolio much easier.&nbsp; For example, you can immediately buy multiple companies based on how much you want invest. &nbsp;Usually, buying full shares of stock takes months upon months of , but with fractional shares you can build diversification inside your portfolio right away.<\/p>\n\n\n\n<p>It can be very expensive to diversify when buying full shares of higher priced stocks.&nbsp; One full share of Amazon right now would take up 10% of a $30,000 portfolio.&nbsp; That type of overweight allocation can be easily avoided by investing in fractional shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Isn\u2019t Investing in Fractional Shares of Stock Risky?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Yes, investing is a risk.&nbsp; While you can potentially earn a larger amount of money buying and holding individual stocks, there are risks. &nbsp;You could lose money, and you must be prepared for the routine ups and downs of the market.<\/p>\n\n\n\n<p>My suggestion is that if you\u2019re already investing for your retirement, , and paid down high-interest debt, then buying fractional shares of stock might be right for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Should You Buy Amazon Stock?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Let\u2019s dive into the research.&nbsp; Amazon AMZN is currently down for the month. &nbsp;I&#8217;m posting this November 2020.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Amazon-month-edited.png\" alt=\"Should You Buy Amazon Stock?\" class=\"wp-image-2262\" width=\"919\" height=\"517\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Amazon-month-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Amazon-month-edited-300x169.png 300w\" sizes=\"(max-width: 919px) 100vw, 919px\" \/><figcaption>Should You Buy Amazon Stock?<\/figcaption><\/figure>\n\n\n\n<p>Year to date, it&#8217;s been growing nonstop.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Amazon-Year-edited.png\" alt=\"\" class=\"wp-image-2263\" width=\"899\" height=\"507\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Amazon-Year-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Amazon-Year-edited-300x169.png 300w\" sizes=\"(max-width: 899px) 100vw, 899px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>It&#8217;s a company I know and trust is going to be around for the long-term.&nbsp; I&#8217;m happy to make an investment in Amazon AMZN.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Other Stocks Should You Buy?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Apple AAPL<\/strong><\/h3>\n\n\n\n<p>My next purchase is going to be <a rel=\"noreferrer noopener\" href=\"https:\/\/apple.co\/36INtKN\" target=\"_blank\">Apple<\/a>.&nbsp; As you can see, Apple is down for the month.&nbsp; Funny enough, I just bought a new <a rel=\"noreferrer noopener\" href=\"https:\/\/www.amazon.com\/dp\/B0875L51VV\/?tag=pod04-20\" target=\"_blank\">iPhone<\/a> this week.&nbsp; I\u2019ve been using iPhones for the past eight years and own a <a rel=\"noreferrer noopener\" href=\"https:\/\/www.amazon.com\/dp\/B08N5N6RSS\/?tag=pod04-20\" target=\"_blank\">MacBook Pro<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Apple-Month-edited.png\" alt=\"\" class=\"wp-image-2264\" width=\"979\" height=\"551\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Apple-Month-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Apple-Month-edited-300x169.png 300w\" sizes=\"(max-width: 979px) 100vw, 979px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Year to date, it\u2019s up.  Apple is a company I\u2019ve used for a long time.&nbsp; I&#8217;m happy to invest and hang on to it long-term.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Tesla TSLA<\/strong><\/h3>\n\n\n\n<p>Many of you probably saw this next one coming. &nbsp;Everybody&#8217;s been talking about Tesla, but it\u2019s down for the month.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Tesla-Month-edited.png\" alt=\"\" class=\"wp-image-2266\" width=\"929\" height=\"523\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Tesla-Month-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Tesla-Month-edited-300x169.png 300w\" sizes=\"(max-width: 929px) 100vw, 929px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Year to date, it\u2019s up.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Tesla-Year-edited.png\" alt=\"\" class=\"wp-image-2267\" width=\"939\" height=\"528\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Tesla-Year-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Tesla-Year-edited-300x169.png 300w\" sizes=\"(max-width: 939px) 100vw, 939px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Telsa stock has just skyrocketed. &nbsp;No, I don&#8217;t own a Tesla, but I do like what the company is doing in the solar sector.&nbsp; I am attracted to this company and look forward to seeing it grow long-term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Google GOOGL<\/strong><\/h3>\n\n\n\n<p>My final stock is .&nbsp; Many people are working from home on their computers, and every kid in school is online learning using Google Classroom.&nbsp;  is more popular than ever, and Google owns YouTube.&nbsp; I really like this company.&nbsp; They are up for the month.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Google-Month-edited.png\" alt=\"\" class=\"wp-image-2268\" width=\"925\" height=\"520\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Google-Month-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Google-Month-edited-300x169.png 300w\" sizes=\"(max-width: 925px) 100vw, 925px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Year to date, they are about even.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2020\/12\/Google-Year-edited.png\" alt=\"\" class=\"wp-image-2269\" width=\"931\" height=\"523\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Google-Year-edited.png 683w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/12\/Google-Year-edited-300x169.png 300w\" sizes=\"(max-width: 931px) 100vw, 931px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Where to Invest Using Fractional Shares of Stock?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>I wanted to share with you how I was able to buy these larger companies using fractional shares of stock.&nbsp; When doing my research, I looked at everything from Vanguard to <a rel=\"noreferrer noopener\" href=\"https:\/\/join.robinhood.com\/richars1230\" target=\"_blank\">Robinhood<\/a>.&nbsp; Even the  allows to you buy fractional shares of stock.<\/p>\n\n\n\n<p>I went with  because there are absolutely no fees for buying or selling, and there are no management fees.&nbsp; You have to be mindful of fees when buying fractional shares of stock because fees can quickly eat up a lot of your money.<\/p>\n\n\n\n<p>Wherever you decide to open an account, please do your own research.&nbsp; Investing is a risk.&nbsp; M1 Finance was by far the best place for me because I&#8217;m the type of person who likes to invest on a weekly, bi-weekly, and monthly basis.<\/p>\n\n\n\n<p>My plan is to purchase $1,000 of these four stocks and have an equal 25% portion of each. &nbsp;After that initial investment, I\u2019ll continue to invest at least $100 per month.&nbsp; I will be adding more stocks, so my pie will evolve over time and reallocate.<\/p>\n\n\n\n<p>You can see what I buy next right here (link coming next month).  Also, check out a <a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-1st-stock-pie\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pie Preview of My Portfolio and its performance<\/a>.<\/p>\n\n\n\n<p>Keep in mind, I have blog posts, <a href=\"https:\/\/www.youtube.com\/playlist?list=PLL-fTDysacRfBopQEZAGpv2mKO9uVSVB0\" target=\"_blank\" rel=\"noopener\">videos<\/a>, and podcasts all about banking basics and <a href=\"https:\/\/youtu.be\/fv90xLDBJwc\" target=\"_blank\" rel=\"noopener\">the power of index funds<\/a>.&nbsp; I use index funds to fully fund my Roth IRA, 403b, invest in a taxable dividend brokerage account, and fund <a href=\"https:\/\/youtu.be\/1HqIGazBAq4\" target=\"_blank\" rel=\"noreferrer noopener\">my 457b<\/a>.<\/p>\n\n\n\n<p>Investing in fractional shares of individual stocks is research and content for me.&nbsp; It\u2019s a bit of the end game when it comes to the order of filling your money buckets.&nbsp; I recommend paying down your debts, , and saving for retirement before buying fractional shares of individual stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Listen to Teacher Entrepreneurs Podcast<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<iframe style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/17044601\/height\/90\/theme\/custom\/thumbnail\/no\/direction\/backward\/render-playlist\/no\/custom-color\/daa520\/\" height=\"90\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"\" mozallowfullscreen=\"\" oallowfullscreen=\"\" msallowfullscreen=\"\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p>As always, I&#8217;m Rich and until next time.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>\u201cteachingmillionaires.com has partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/cardratings-blog-disclosure\/\" target=\"_blank\" rel=\"noreferrer noopener\">CardRatings<\/a> for our coverage of credit card products. <em>teachingmillionaires.com<\/em> and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved by any of these entities. <em>Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser&#8217;s responsibility to ensure all posts and\/or questions are answered<\/em>. I am not a financial advisor. The information I share is for educational purposes only and shouldn\u2019t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s an overview of how using fractional shares of stock can help you buy portions of large companies such as Amazon AMZN, Apple AAPL, Tesla TSLA, and Google GOOGL &#8211; and how fractional shares can help diversify your investment portfolio. What Are Fractional Shares of Stock?&nbsp; Fractional shares of stock allow you to buy a&#8230;<\/p>\n","protected":false},"author":3,"featured_media":4370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[10,1],"tags":[],"class_list":["post-2251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving-investing","category-all-posts"],"featured_image_src_large":["https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2020\/11\/maxresdefault-1.jpg",800,450,false],"author_info":{"display_name":"Rich Smith","author_link":"https:\/\/teachingmillionaires.com\/newstag\/author\/rich\/"},"comment_info":26,"category_info":[{"term_id":10,"name":"Saving &amp; Investing","slug":"saving-investing","term_group":0,"term_taxonomy_id":10,"taxonomy":"category","description":"","parent":0,"count":14,"filter":"raw","cat_ID":10,"category_count":14,"category_description":"","cat_name":"Saving &amp; Investing","category_nicename":"saving-investing","category_parent":0},{"term_id":1,"name":"All Posts","slug":"all-posts","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":33,"filter":"raw","cat_ID":1,"category_count":33,"category_description":"","cat_name":"All Posts","category_nicename":"all-posts","category_parent":0}],"tag_info":false,"taxonomy_info":{"category":[{"value":10,"label":"Saving &amp; Investing"},{"value":1,"label":"All Posts"}]},"_links":{"self":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/2251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/comments?post=2251"}],"version-history":[{"count":0,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/2251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media\/4370"}],"wp:attachment":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media?parent=2251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/categories?post=2251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/tags?post=2251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}