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Thread: What stocks should i invest in?

  1. #1
    Featured Member Fawn's Avatar
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    Default What stocks should i invest in?

    Father was being nice and sent a 1,000 check to invest with. What stocks would be a good investment? I saw that Citi group got that huge bail out and stock went up immediately. Also that caused a wave and 6 other bank stocks went up. Any suggestions? I personally own 5 shares of KO bluechips. I need to diversify my investments.
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    God/dess Deogol's Avatar
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    Default Re: What stocks should i invest in?

    Good stocks would be chicken noodle soup, flour, bullets, gas....

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    Banned MoetATL07's Avatar
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    Default Re: What stocks should i invest in?

    Umm okay I would like to know the answer to this also. I wanna start investing soon.

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    Veteran Member angelicat's Avatar
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    Default Re: What stocks should i invest in?

    +1 ^^

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    God/dess doc-catfish's Avatar
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    Default Re: What stocks should i invest in?

    Quote Originally Posted by Deogol View Post
    Good stocks would be chicken noodle soup, flour, bullets, gas....
    batteries, MRE's, firewood....

    But seriously, if that $1K is your only investment money, I would put into a 6 to 12 month CD for the time being until this whole shitstorm settles down. A stock taking a big jump on an acute attack of good news isn't that exceptional at the moment, especially when it can just as easily bleed it back the next day.

    Even in happier times, transaction fees, even at Scottrade prices ($7 a pop) are going to eat too heavily into your returns to make single stock picking with one large worthwhile, especially if you want to "diversify" things. A better route would be to a broad market mutual fund, but the really good funds that have no loads (sales commissions) attached and low expense ratios usually require a $2500-3000 minimum. Ones that will let you in for $1000 may take 3-7% of your money right off the bat, or when you sell it.

    IMO, if you have an investing question this basic, the best "investment" you can make would be some books, websites, or other materials that will help familiarize yourself with different investment vehicles, styles, and whatnot, so you can figure which route is right for you. Whatever you do, don't interpret anything as gospel, as there is a lot of conflicting info, and no shortage of snake oil being peddled.
    Former SCJ now in rehab.

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    God/dess hockeybobby's Avatar
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    Default Re: What stocks should i invest in?

    Put it in a high interest daily savings account...then add $25 to it every week religiously. Ask again in a year.

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    God/dess Zofia's Avatar
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    Default Re: What stocks should i invest in?

    Invest in companies you know and can keep an eye on. Read their annual reports and all their SEC filings for the last five years. If what they say about their business makes sense to you and you think you understand it, then dig into the numbers. There are lots of stock guides to help you determine what are good numbers and what are not so good.

    As an example, I grew up in Indianapolis and went to college at Indiana University. My first investments were in Cummins, Eli Lilly and Union Planters Bank. I have broadened my investments since to include some bio-techs, the industry where I work now. Normally, I do not invest in my own employer as a paycheck is enough risk for one company. But, my previous employer gave me stock options rather than a big paycheck. (That paid off nicely when we got purchased by a multi-national.) I still hold my Cummins stock, though not as much of it as I held last year, even after it split twice.

    Right now, high grade corporate bonds are performing well. I have moved well over thirty percent of my portfolio into high grade corporate bonds. Lots of people are buying treasury bonds, bills and notes. Thus, the yield is almost zero. Everyone wants quality these days. However, the spread between high grade corporate debt and government debt is significant enough to make me prefer the corporations. Still, I read their annual reports and SEC filings. I NEXIS the companies I invest in. I study them carefully to see what they are going to do with my money before I buy in. And then, I am careful to watch what they are doing.

    HTH
    Z

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    Member Ook's Avatar
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    Default Re: What stocks should i invest in?

    You ought to consider:
    - You can't adequately diversify with $1,000- you need at least 20 stocks to do that.
    - I wouldn't touch anything that would let you buy round lots (100 shares). When you include transaction fees and spread, you're looking at a stock priced under $9/share. Ugh.
    - Don't put any money into the stock market that you want back within the next 10 years. It's going to be a rough ride for a while.

    With that in mind, I'd suggest:
    - An S&P 500 or Russell 2000 mutual fund with low management fees instead of buying individual stocks. With that in mind, Vanguard would be an excellent choice.
    - Many Mutual Fund companies have minimum investments that are much higher than $1000. However, you can get around restrictions like that if you put it into a Roth IRA. Not only will it grow tax-free, you won't be tempted to dip into it, and it's tax free when you take it out. When you're old enough to take money out, it'll be worth $25,000.


    The best time to invest is at the point of maximum pessimism
    - Sir John Templeton
    Last edited by Ook; 11-26-2008 at 05:29 PM. Reason: Get poor fast, get rich slow

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    Senior Member Butrcup98's Avatar
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    Default Re: What stocks should i invest in?

    I agree with doc-catfish.

    If that's the only money you have, then you need to keep it safe and accessible.

    If you don't know how to play the stock market, which most of us don't, it's safer to pay a broker to do it for us. I pay mine 5.65%. (Yes, that sucks.) But would you defend yourself in court or pay a lawyer? (Not the same, but you get my point)

    I disagree with DC about the CD. If you invest in a 6 month cd and need the money for an emergency in 3 months, you will be penalized.

    Also, I found a great interest rate through capitalone.com with their online savings account. I'm earning 3.5%. It's not great, but it's safe.

    If you have all kinds of money to spend and this $1K is just a drop in the bucket, then I would suggest stocks.

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    Default Re: What stocks should i invest in?

    I used to start with 1000, broker fees will kill you, especially if you don't have the patience to put it all in one stock and wait a bit.

    How much risk can you take?

    put it in this and in two weeks you can either have $500 or $5000.

    otherwise just keep the cash saved, 1000 is nothing and returns will suck. Pay off your debt or credit cards- you already getting return of 5% - 20% there

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    Banned Melonie's Avatar
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    Default Re: What stocks should i invest in?

    you might consider buying an ounce of gold !!!

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    Default Re: What stocks should i invest in?

    If that was all my surplus money, I would put it in a high interest savings account that would let me withdraw it at any time, as a rainy-day fund that's earning some interest. Everyone needs a safety buffer, especially nowadays. If I was feeling a little more of a gambler, I'd buy gold if possible. If I was unconcerned about sleeping at night, I'd buy foreign currency (assuming you're in the US)

    Seriously, if that's all your spare money, I vote for the savings account.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
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    Default Re: What stocks should i invest in?

    Oh, and make sure the bank you put your money in isn't about to go broke Aie.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: What stocks should i invest in?

    So would a high yield savings accout with ING be a safe way to go? I want to put in about $3,000.

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    Default Re: What stocks should i invest in?

    ^^^ not a bad idea assuming that the Dutch government continues to bail out ING bank ! Actually, US customers should be FDIC insured ... which also comes with the proviso that the US gov't will continue to bail out the FDIC !



    I'm not saying that a high interest rate CD with ING or GMAC or a dozen other 'troubled' financial institutions isn't a 'safe' investment. But these 'troubled' financial institutions pay above market interest rates for a REASON besides simply feeling generous or wanting to reduce their profit margin ! There are possible scenarios where you as a depositor may wind up waiting for months or years (and receiving zero interest while waiting) while a bankruptcy court and/or an insurer figures out which 'creditors' to pay off first in order to get your $3000 back. Is this likely - no. Is this possible - yes. The above market interest rates paid are to compensate depositors for assuming an increased risk factor !

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    Default Re: What stocks should i invest in?

    Personally, I wouldn't touch any bank even with FDIC - like Melonie (who I am astonished at how much good info she has!) said , you might wait for a looooooooong time to get money back. And if the govt just prints a bunch to give back deposits, then we are already in a shit storm and you can buy a loaf of bread with $1000 at that point.

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    Veteran Member retiredangel's Avatar
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    Default Re: What stocks should i invest in?

    I'm still buying and selling AAPL (Apple)and making more than if I was doing "nothing else" with that alloted money.

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    God/dess Deogol's Avatar
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    Default Re: What stocks should i invest in?

    I say she put it in there. She can get a nice education on the stock market for $1,000.

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    God/dess doc-catfish's Avatar
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    Default Re: What stocks should i invest in?

    Quote Originally Posted by Butrcup98 View Post
    I disagree with DC about the CD. If you invest in a 6 month cd and need the money for an emergency in 3 months, you will be penalized.
    Agreed, but if she was looking to invest this money into stocks, I took the notion that this was going to be a long term investment and that her emergency funding was already taken care of.

    Note: Everyone should have their emergency savings fully funded before they start putting money into risk-to-principal investments like stocks.
    Former SCJ now in rehab.

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    Senior Member Butrcup98's Avatar
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    Default Re: What stocks should i invest in?

    What about trading foreign currency? I don't actually know anything about buying/selling stocks or foreign currency. But I see a lot of people on here who mention it.

    Would foreign currency trading be safer than playing the stock market?

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    God/dess Deogol's Avatar
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    Default Re: What stocks should i invest in?

    Quote Originally Posted by Butrcup98 View Post
    What about trading foreign currency? I don't actually know anything about buying/selling stocks or foreign currency. But I see a lot of people on here who mention it.

    Would foreign currency trading be safer than playing the stock market?
    Only of you want to go head to head with George Soros... a known and self-acknowledged nazi collaborator. For reals - no exaggeration.

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    Default Re: What stocks should i invest in?

    Quote Originally Posted by Deogol View Post
    Only of you want to go head to head with George Soros... a known and self-acknowledged nazi collaborator. For reals - no exaggeration.

    The big players can 'influence' the currency markets somewhat 'easily'. After the Asian 'meltdown', he advised countries on how to make their countries less susceptible to 'influence'. lol

    Soros also believes in hedging his bets. Throughout the 90's, he funded commie groups and organizations in Eastern Europe.
    Quote Originally Posted by The Snark View Post
    But then I suppose the sort of people who write this kind of crap generally don't allow their opinions to be tainted by things like "facts" and "reality".
    Distortion becomes somehow pure in its wildness
    The note that began all can also destroy

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    Default Re: What stocks should i invest in?

    big players can also 'influence' stock prices ... as noted by CitiBank shares falling to the under $4 range after the government allowed their emergency ban on the short selling of financial stocks to lapse !

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