Why Starting Small Works: How a 1% Starter Position Can Build Big Gains Over Time

By Reuben Gregg Brewer – Feb 14, 2026 at 5:32AM ESTKey PointsEvery investor is driven by emotions.You can help set yourself up for long-term success by playing to your own emotions.Starter positions are a powerful call to action.We’re bullish on these 10 stocks ›NASDAQ: TXNTexas InstrumentsMarket Cap$205BToday's Changeangle-down(1.34%) $2.98Current Price$225.98Price as of February 13, 2026 at 3:58 PM ETIf you know there's a company you want to own, but it's too expensive, don't do nothing, do a little.Human emotions are powerful, and you have to work with them or they will get the best of you, particularly when it comes to investing. For example, the fear of missing out leads to buying overpriced stocks. The fear of loss leads investors to dump those same stocks when they go down. However, if you recognize your emotions, you can set yourself up for long-term success. And starter positions of as little as 1% could be the powerful tool you need. Here's why. I start small on purpose Investing doesn't have to be an all-or-nothing activity. In fact, I don't jump into a stock with both feet very often. I usually begin with a starter position. And over time, I build my stake until it becomes a full commitment. That can take months, and sometimes years, to achieve. Image source: Getty Images. The big goal is to give myself time to really know a company before I take on a bigger risk. There's nothing like putting money on the line to help sharpen the senses. Sometimes a stock never grows beyond a starter position, as what happened with Dominion Energy (D +2.01%). I've since sold Dominion because management repeatedly failed to deliver on the promises it made. Sometimes an investment can move to a full position quickly, as what happened with Texas Instruments (TXN +1.34%). Texas Instruments has a no-nonsense management approach that resonates with me. ExpandNASDAQ: TXNTexas InstrumentsToday's Change(1.34%) $2.98Current Price$225.98Key Data PointsMarket Cap$205BDay's Range$221.54 - $226.8852wk Range$139.95 - $231.32Volume179KAvg Vol7.9MGross Margin57.02%Dividend Yield2.46% There's another starter position that can be even more powerful Often, I see an investment that I think has long-term promise, but it is too expensive. That's not shocking, given that Wall Street tends to reward success over the long term. Sometimes I'll take a small position, which in theory could be as little as one share, or perhaps just 1% of whatever you consider a full position. That gets me in the door and gets me to pay more attention to the stock. It also primes me emotionally for the time when an expensive stock sells off and starts to look cheap. If you are like me, a starter position will leave you waiting for the opportunity to build up your stake. The key is that when that stock is finally attractively valued, it will likely be when most investors are selling it. If you didn't own that starter position, you would probably be too worried to go against the crowd. Buying when others are selling is, basically, leaning into risk, which you probably won't do unless you prepare yourself for it in advance with that starter position. Starter positions can help make you a contrarian If you buy when most of Wall Street is selling, you are normally called a contrarian. It is emotionally difficult to be a contrarian, but that's usually what is needed if you want to purchase good companies at attractive prices. Using starter positions to work with your emotions can help you unlock your inner contrarian, which may be a new investment approach for you, and all it takes is a single share of stock.Read NextMar 31, 2022 •By James Brumley3 Unstoppable Investments Everyone Needs in Their PortfolioSep 20, 2020 •By Chuck SalettaInvesting in These Stocks Now Could Make You a Millionaire RetireeMay 21, 2017 •By Keith Speights5 Leadership Lessons From Exceptionally Successful CEOsSep 5, 2015 •By Dan CaplingerRising Dividends Are in the Cards for These 3 StocksJul 19, 2014 •By Rick Munarriz5 Stocks to Watch This WeekMay 5, 2014 •By Chuck SalettaWhy Invest in Dividends?About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedTexas InstrumentsNASDAQ: TXN$225.98 (+1.34%) $+2.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.