Pursuing a dream of getting into the stock market need not take a lot of money. In fact, it is possible to start buying shares for just a few hundred pounds.
With a new year almost upon us, a lot of would-be investors may be tossing up the question of whether they have enough to start buying shares.
Here is how someone could do that with just a few hundred pounds.
Starting on a small scale can offer benefits
Does it make sense to start investing with a fairly modest sum?
I see some advantages. One is that it allows someone to get into the market sooner.
It also means that any beginner’s mistakes will hopefully be less costly than if bigger sums were at stake.
However, when investing a few hundred not a few thousand pounds, minimum fees and commissions can soon add up.
For that reason, it pays to make a proper comparison of available share-dealing accounts, Stocks and Shares ISAs, and trading apps.
Getting ready to invest at the start of 2026!
Having set up a way to buy shares, it is also important for a would-be investor to get to grips with some basics of how the stock market works.
That include concepts like how to value shares and properly diversifying a portfolio.
Diversification can be challenging when investing a few hundred pounds, but the money can be split over a couple of different shares at least.
Another tool for diversification on a low budget is buying shares in an investment trust that in turn holds its own diversified portfolio.
Knowing why you want to invest is also important.
Different investors start buying shares with different goals. For some passive income in the form of dividends is the draw, while others are more focused on businesses’ growth prospects.
Beginning the investment journey
With the right preparation, it should not take long before someone is ready to start buying shares.
One share I think investors ought to consider as we head into 2026 is baker Greggs (LSE: GRG).
Greggs has not had a good 2025. The share price has fallen around two-fifths since the start of the year.
There are several reasons for that.
Higher tax and employment costs have been eating into the company’s profits. I see that as a risk for next year too.
Stocking a less than optimal range of products early in a warm summer led Greggs to issue a profit warning. It also reduced management credibility.
Hopefully that planning problem will not rear its head again in 2026, though it could.
Selling for only 12 times earnings, the Greggs share price looks cheap to me if the company can steer clear of such mistakes next year.
It has thousands of shops, a simple but proven business formula, and a large, loyal customer base. I see ongoing growth opportunities for the business and reckon it could potentially be a long-term bargain.
