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Introducing the LemonFools Personal Finance Calculators

Meaning of the term Capitalisation

Analysing companies' finances and value from their financial statements using ratios and formulae
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Re: Meaning of the term Capitalisation


Postby TheMotorcycleBoy » October 11th, 2018, 5:51 am

Charlottesquare wrote:
gryffron wrote:Very high value individual shares makes it harder for small investors to buy into the company. Such as your NXT problem.


Like Berkshire Hathaway A shares at $323,000 per share, showing down $12,630 today as I type. :D

How inconsiderate of Warren!!

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Re: Meaning of the term Capitalisation


Postby dealtn » October 11th, 2018, 11:11 am

TheMotorcycleBoy wrote:Thanks Gryf and Alaric,

Yes NXT is clothing/fashion accessories retailer. I know a little about them (more than our other investments), mother-in-law has worked there for about 15 years! They are gradually moving more and more into online, and in my naive view have a highly profitable card scheme which customers link to both online and instore sales. Plus it's a well known brand. Well if we get spare cash and we think it's worthwhile it's probably a case of a top-up not DRIP.


It's a little way off for you, and wouldn't be the reason to own the shares in the first place, but owning 100 shares entitles you to a shareholder perk of a 25% off voucher once a year too. (At the margin it's better for one person to own 100 shares, say, than for a couple to have 50 each, and similarly a couple to own 100 each rather than one with 200).

Might be relevant for others that didn't know.

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