Bought TSMC but didn't profit? Bought Chuan Hu and earned 3 million? Ruan Mu-Hua teaches 'small-capital investment strategy': Stop saying you can't afford it

On July 7, Taiwan's stock market opened higher but closed lower after intraday volatility. However, the high-priced stock Chuan Hu (2059) surged to its daily limit, closing at NT$11,110 per share—a new all-time high. Amid small investors lamenting they 'can't afford' such expensive stocks, financial expert Ruan Mu-Hua posted on Facebook stating he himself would never buy a full board lot (1,000 shares) of such high-priced stocks in one go. Instead, he builds his position gradually using 'fractional shares.'

The Taiwan Stock Exchange rose over 430 points early in the day, briefly surpassing 44,800 points, before turning negative and falling below 44,000. It closed at 44,225.91, down 170.79 points (-0.38%), losing support at the quarterly line around 44,278. Trading value dropped to NT$819.204 billion. Institutional analysts expect the market to consolidate near the quarterly line as investor sentiment stabilizes.

While Megatrend (TSE: 6113), known as the 'stock king,' fell 2.42% to close at NT$16,345, another premium stock—Chuan Hu (TSE: 2059)—soared to its upper limit at NT$11,110, setting a new record. With one standard board lot equal to 1,000 shares in Taiwan, purchasing one lot of Chuan Hu requires NT$11.11 million (approximately USD$340,000).

Ruan pointed out that if someone had bought both TSMC and Chuan Hu on July 17—the day the market plunged nearly 3,000 points—and held until August 7, TSMC would have broken even, while Chuan Hu would have generated a profit of NT$3 million per lot. This highlights the importance of portfolio diversification and strategic stock selection, debunking the myth of 'all-in on one stock.'

Can small investors really buy high-priced stocks?

Ruan emphasized that investment returns are measured not just in absolute amounts but also in percentage terms. Responding to comments like 'I can't afford high-priced stocks like Chuan Hu,' he clarified that even he doesn’t buy full lots at once. Instead, he uses fractional trading to accumulate shares gradually.

For example, regarding Chuan Hu—often called the 'queen of stocks'—Ruan revealed he built his position through fractional purchases. In one of his brokerage accounts, he owns only 115 shares. Despite this small holding, his unrealized gain is nearly NT$300,000, with a return rate of about 30%.

Ruan stressed that whether a stock makes money depends on two factors: choosing the right stock and the amount invested. The return rate remains constant regardless of investment size. For instance, investing NT$1 million at a 30% return yields NT$300,000; investing NT$100,000 at the same rate earns NT$30,000. 'Stop saying you can't afford high-priced stocks—owning even one share counts as ownership,' he urged.

He concluded that successful investing isn't about buying full lots of expensive stocks, but about selecting growth stocks wisely and consistently building positions—even through fractional shares.