Its funny, I recommended Bitcoin to some relatives that dont have a lot of money and a common complaint that I received is that they own "too little". They were bothered by the fact that they owned 0.0xxx
Usually when someone says that is irrational, that someone is rich and can own FULL units. We dont listen to these small investors the same way some rich people are totally oblivious about the issues of the poor and might say 'these people are just lazy'.
These simplistic explanations are wrong in my view. That rich guy goes to cocktail parties and brag about his investments, he might say "I bought a shitload of AMZN last year and now I'm up a ton" he NEVER has to face a situation where he owns a tiny fraction or small amounts of something and needs to talk about it in public, as a result he is out of touch with reality. Its an embarrassment for people. Essentially they are giving up the privacy of their finances in a way that make them lose status so they are reluctant to do that and get angry at the investment for being so "expensive"
That expensive investment is forcing them to give up their privacy when they dont want do, so what do they do? They get pissed and sell, or dont talk to others about it, or are not as enthusiastic when they talk to others. They are not proud owners, and ownership is something that people cheerish, just look at how many people want to be homeowners (No one was ever proud of be a 35% owner of a house)
So, now I believe that yeah, stock splits do matter and the size of the float of an investment is very important
Usually when someone says that is irrational, that someone is rich and can own FULL units. We dont listen to these small investors the same way some rich people are totally oblivious about the issues of the poor and might say 'these people are just lazy'.
These simplistic explanations are wrong in my view. That rich guy goes to cocktail parties and brag about his investments, he might say "I bought a shitload of AMZN last year and now I'm up a ton" he NEVER has to face a situation where he owns a tiny fraction or small amounts of something and needs to talk about it in public, as a result he is out of touch with reality. Its an embarrassment for people. Essentially they are giving up the privacy of their finances in a way that make them lose status so they are reluctant to do that and get angry at the investment for being so "expensive"
That expensive investment is forcing them to give up their privacy when they dont want do, so what do they do? They get pissed and sell, or dont talk to others about it, or are not as enthusiastic when they talk to others. They are not proud owners, and ownership is something that people cheerish, just look at how many people want to be homeowners (No one was ever proud of be a 35% owner of a house)
So, now I believe that yeah, stock splits do matter and the size of the float of an investment is very important
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