While it's true you must control your transaction costs and keep your expenses low to benefit from the growth in your investments, it is a mistake to discount the value of small investments. It may be often quoted, but the parable of the mustard seed certainly applies to your portfolio - the smallest start can yield huge results if given enough time and thought.
Here's a perfect example that I talk about in my latest book, The Complete Idiot's Guide to Investing, 3rd Edition. In 1919, Coca-Cola went public at around $40 per share. Due to some problems in the business and other factors, the stock price fell to $19 per share by the end of 1920. Investors that had subscribed to the initial public offering were now sitting on a more than fifty percent (50%) paper loss.
They could have gotten spooked and sold out of their position. Those who had faith in the business, however, have been extraordinarily well served. Despite wars, recessions, depressions, a Presidential assassination, price controls, and other huge geopolitical and macroeconomic events, that single share, with dividends reinvested (that is crucial!) has now grown into more than $5,000,000!
In fact, a $10,000 in any number of companies - Berkshire Hathaway, Wal-Mart, Home Depot, McDonalds, Capital Cities, Wells Fargo, American Express, The Washington Post, Chico's, and Microsoft, just to name a few - was enough to make you rich enough to never work again. Hang in there, focus on building a complete portfolio, and time will take care of the rest if you are diligent about protecting your capital and limiting risk.
