Investing With Shareholder Mindset? No, Thanks.
It is an exhilarating thought - that one can become a shareholder when one buys a company's shares. At least, that was how I felt when I bought my first shares a long time ago, in a now-delisted company. The price was 60 cents a share and I bought a thousand shares for $600. I had become a shareholder!
But does being a shareholder mean that I have some control over the company's management? No, unless I am a substantial shareholder, like Warren Buffett. Unfortunately, I was not, am not, and most probably will never be.
Do you know how much money is needed to own just 0.01% of Apple today? About 260 million dollars. If you have 27 million dollars, you can own about 0.01% of Coca-Cola Co., but even then you are still not considered a substantial shareholder and will have little or no say in the direction of the company.
Experienced traders will tell us not to get emotionally attached to the shares we own. Emotions cloud our judgement and attachment makes it difficult for us to close our positions when we need to. If we have a shareholder mindset, we will naturally feel attached to the shares we own and that may not be a good thing.
Investing without a shareholder mindset does not mean doing away with due diligence checks. We can still look at the fundamentals, do our technical analyses, or trust our gut feel for all we want. But let us not delude ourselves. For most of us, the shares we own are too insignificant for us to have any control over the companies which we are part-owners of.
So for me, unless I own a substantial portion of a company's shares, I will give the shareholder mindset a miss. I choose to buy when I see an opportunity, and sell when I see a need.
Hi Intel, even though you are the free share that I got when I signed up for a Moomoo account, please understand that we may have to part ways eventually, when the price is right. We've had some wonderful time together. Let's cherish the time we still have left, and wish each other well when it's time to go. ![]()
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GuruGuruGulu : so this was just 1 share?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
allen kidd GuruGuruGulu : how many shares this is isn't relevant to anything. some people have a lot of money to invest. others only have enough to buy one or a couple at a time. at least this investor has an account and is willing to invest.
Moogoorooloo OP GuruGuruGulu : Yes, this was just 1 share. Moomoo only gave a free share for opening an account.
Moogoorooloo OP allen kidd : So very true. I trade within my means. I think most of us should.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
noglyph : That's one way to take control of your investments with ease and confidence.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
NiceOne : Wow. Amazing analysis... smart!