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I've already discussed this in the chat, but I've been working more recently and saving my paychecks to invest in stock.
So far I own 7 shares of Exxon Mobile. I have a bunch of money I transfered to my brokeridge account and I'm looking to buy some more. Some companies I'm currently looking at:
Apple
Microsoft
Best Buy
Johnson and Johnson
General Electric
As a side note, I won't be touching this money for many years, so any risky stocks will be considered.
General advice is welcome also.
From the looks of it, I wouldn't recommend looking at Microsoft :laugh4:
Unless you really know what you are doing, I would advise that you invest in a mutual fund rather than individual stocks. Mutual funds are designed for people who want to invest, but don't have the time and/or knowledge to micromange their own portfolios. Of course, if you really pay attention to financial news and are confident that you know what you are doing, go right ahead with individual stocks.
Also, if you are looking at long-term investment, I HIGHLY encourage you to stay away from "risky" stocks. Long-term investment is generally best for slow-growth, low risk stocks/funds. Money market funds are also a good option. There is no need to take risks if you've got 30 years before you'll need the money.
These stocks are fine Ice there isnt much risk given the market share of each. As an example people piss and moan about microsoft, but whats there market share? :yes:Quote:
Originally Posted by Ice
Couple of common sense rules to stock investments
1. invest in what you know: If your an auto mechanic and 65% of the parts you and your colleques get are from Auto zone that might be a good investment.
2. Cash on hand: Companies with cash can solve problems faster. Blue chips are solid choices here.
3. Legalities: Tobacco companies used to be solid investments but litigation has dragged them down. Microsoft has pending legal issues in the EU over monopoly claims. Its the one company that might be able to buy its way out of it.
4. Market Share: Whats on your shelf at your home? chances are its on the same shelfs of many other americans. Johnson and Johnson and General Electric are very good choices. (proctor and gamble is another).
5. Gambling: Anything outside of the blue chip world is a risk, your gambling and you better be prepared to loose.
Overall you have picked blue chips and thats a solid start to a portfollio. its going to cost you a lot of money to get in though and its a long term investment to make real money. That said TinCow has sage advice. Essentially by investing in Blue chips you have made a secure investment which requires little management. Should you venture into more speculative ventures its work.
Supplement your stock investments with a solid mutual fund (an index fund maybe?) The overall goal is to diversify enough to have enough coverage for all market conditions.
QFTQuote:
Originally Posted by Odin
XOM selling for $88.61 per, x 7... I wish I'd had $600+ just laying around in my student days, waiting for my bet/investment. (j/k; good on ya, 'learning by doing').
investing in your student days Kurki? You would have had to use a good old fashioned broker if I am not mistaken. You could also walk into fed banks back then and buy treasury notes directly.Quote:
Originally Posted by KukriKhan
Besides what do you need material wealth for with your uncompramising wit? :wiseguy:
Yup, that's me: wit-rich, cash-poor. :laugh4:Quote:
Originally Posted by Odin
Six hundred 2007 dollars translates to about 400 1970 bucks, or two week's pay back then. In those days, I didn't know a treasury note from a "please excuse Johnny from school" sick-note. Such are the advances in education. :thumbsup:
Today, my 401(k)-like plan lets me move money around among 6 different fund sources, on my own - you're right; in 1970 I'd have had to use a broker. My REAL retirement plan, sadly, involves matching 6 numbers with the State of California twice a week. One of these days...
:beam:
Well if its any consulation I buy scratch tickets from time to time as well. What the hell, you cant win if you dont play.Quote:
Originally Posted by KukriKhan
Also back in your school days if I am not mistaken (which rarely happens :laugh4: ) you could walk into a fed reserve bank and exchange your dollar bills for gold.
Now if you had done that it would have cost you approx 35.00 for an ounce of gold. Today that same ounce sells for 830.00. That would be a 2371%return.
Stick with the wit old timer.
:medievalcheers:
Don't start with buying individual stocks! :furious3:Quote:
Originally Posted by TinCow
Buy dollars, live a little.
Gold stocks are usually OK, I find. They're usually a good stock to buy.
My dad actually did this...when 1,5€ got you 1$ :laugh4:Quote:
Originally Posted by Fragony
Good advice guys (TinCow and Odin)Quote:
Originally Posted by Odin
I do like the blue chips and I do realize I'll be in it for the long haul (that's my plan actually. I don't plan to ever sell these investments unless I need the money)
I'll be buying microsoft. In a few months when I collect some more money together, I'll probably consider some others.
Invest in porn and arms industry, they seem to increase most these days
Porn wouldn't be very smart, industry is in big trouble since the webcam, and the arms industry, I'll leave that to unicef and warchiild and other charity organisations.
Oh shut up. Out of principle one should not engage Microsoft in such a way, even if it's for the money.Quote:
Originally Posted by Odin
Do I detect passion Bijo? How droll for you. :wiseguy:Quote:
Originally Posted by Bijo
Hoku Scientific (HOKU). Easy money short term once financing comes in.
Sirius Satellite Radio (SIRI) Merger news coming, again, very easy money short term.
None of these are very useful stocks to own IMO. Large companies with not much upside potential. Apple will suffer a pullback soon, long term its fine.Quote:
Apple
Microsoft
Best Buy
Johnson and Johnson
General Electric
Abaxis (ABAX) is ready for large growth. Stable like the companies you listed, yet much more profitable for the shareholder.
Personally, I wouldn't buy any of these. The people I know who make good coin from playing investments usually aim for undervalued stocks, and I'm not aware that any of these companies have depressed prices. But then, I'm not a clever markets guy, so what do I know.Quote:
Originally Posted by Ice
I like no-maintenance-fee index shares. Just sock the money away, never give a dime to the management group, and watch the money bob up and down over the years. Mostly up, thank goodness.
Do you have a valid reason other then it being commercially successful?Quote:
Originally Posted by Bijo
Heh,
Microsoft was up 4.26% today :book:.
Microsoft is a good investment Ice, again market share.Quote:
Originally Posted by Ice
MSFT has been flat for years. There are so many numerous stocks with a rewarding dividend and growing share price one could invest in which would be far more rewarding than MSFT. Perhaps I'm missing something. Please explain to me why MSFT is a good investment?Quote:
Microsoft is a good investment Ice, again market share.
no, I dont desire too.Quote:
Originally Posted by Hiji
Renewable energy all the way...look at the companies very closely....German ones are pretty cutting edge, but may be too high already.
u may wanna look here....http://www.renewables-made-in-germany.com/en/
I am working in the field...so I know my way round a bit...just a bit u know.....One of the most important rules: in this business, stocks is wht I am typing about, no one really knows s***, but talks a lot of it....
Here's my personal rules for investing....
-Look for stocks that are selling at a discount. So if everybody is buzzing about a particular stock, I avoid it. Chances are, by the time you've heard about it from word of mouth, so has the rest of the investing world and its already recognized its upside potential.
-Do your homework. Review the company's financials for the past couple of years (their balance sheet and their summary sheet). Companies can play tricks like transferring assets around to make it look like they're growing, but in reality, it was just an internal transfer of cash. Cash flow statements make this impossible to hide.
-Invest in growth. Look for companies with a high PEG rate. What is a PEG rate? P/E ratio normalized by the companies per year annualized growth predictions over the next 3 years. If you don't know what a P/E ratio is, stick to the mutual funds.
-To look for bargains, look for somebody who's recently suffered a black eye. Most blue chips will recover. The pharmaceuticals were being called 'dead and not coming back' in the late 80's and early 90s. Now I warn you, it is very possible that a particularly bad event may cause a downward spiral. The company has to have solid financials prior to this event. This method actually had me looking at MSFT for once, in light of all the EU judgements. But their PEG ratio doesn't meet my threshold.
-Don't overlook foreign markets. China is already a bit played, but Brazil has some attractive options, as does Turkey. I'd recommend you look for an emerging markets mutual fund, not invest in individual concerns, because many of these countries don't use accounting principles we recognize.