Is starting with $500 to invest in shares different to $5,000?

June 2, 2020

The approach to investing with a small sum of money and a large sum of money is always the same. In the long run, you are looking to buy good businesses at a discount, with a promising outlook for the future. 

The problem is that too many people chase quick, easy money. They want someone else to do all the work, which absolves them of all responsibility if they make a loss. And it’s easy to take all the credit when they make a profit.

The unique opportunity we have today

When working with a smaller amount of money, especially today, the universe of opportunity for a diligent investor has never been larger. The reason is, we have access to expert research and analysis on companies, at our fingertips. This arms us with the knowledge to make the best, educated guesses on which company we should invest money into.

Whether you are investing $500, $1000 or even $100,000, you should treat that decision-making process the same way you if you were purchasing a house. 

To experience significant returns on your investment, you need to look no further than the success of Tabarruk’s subscribers, our goal is to ensure we educate members about the exciting companies out there.

With knowledge and education, we equip ourselves to make informed decisions. By knowing exactly why we are investing in a company, we take the uncertainty out of the equation. This helps regulate our fear and anxiety better when the market, at times, goes up and down like a roller coaster.

How do you end up with a $100,000 portfolio?

Simple. You take the first step. 

You arm yourself with knowledge. 

You choose companies from a list of ones that have been carefully researched and analysed.

You learn from the success of others when they share it openly.

Money compounds

500 or 5,000 will compound and grow exponentially. We explain that with examples in our How we beat short term trading and index funds article.

$500 wasted is a potential $15,000 in ten years.

In Australia, we maintain that the minimum amount of money needed to start is $500. 

There you have it, to end up with a six-figure investment profile, you need to start with a three-figure investment.

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