As I mentioned in the preview, this will be the first post as I take a look deeper inside my portfolio. Based on allocation, LinkedIn (Nasdaq: LNKD) is my current largest holding, partly because of its performance since purchased it, and partly because the stock price is so high. Though I try not to base my investment decisions on share price, it often factors into my decision making process if a stock is priced too high, it might be difficult to purchase when you are working with limited funds.
For example, companies like Google (Nasdaq: GOOG) or priceline.com (Nasdaq: PCLN) currently have share prices close to $900. If you are working with a $10,000 portfolio, and purchase even one share of these companies, they would immediately make up 9% of the portfolio, which could impact the ability to diversify beyond that holding. So while the price of the individual shares shouldn’t dissuade from purchasing a stock, it should factor when building an overall portfolio. Besides, the high prices of these two stocks haven’t prevented strong performance from them, as folks with real money can afford to purchase them without problems.
Continue reading “Portfolio X-Ray: LinkedIn” →