Results 1 to 14 of 14

Thread: What is the best stock to put money in?

  1. #1
    God/dess leilanicandy's Avatar
    Joined
    Aug 2005
    Location
    where they like American Boys
    Posts
    2,111
    Thanks
    0
    Thanked 4 Times in 4 Posts

    Default What is the best stock to put money in?

    I have been thinking about investing some extra money into the stock market. I want to invest into something that is going give me some extra money back! Where is a good place to go learn more about the stock market? Who do I need to talk to? What are the best stocks to invest in? All your information will be so much appreciated.
    If you want the present to be differant from the past, study the past.
    Baruch Spindza

    It is what it is, not what you want it to become, that's important -- at least for now. Today, remember that things worth having are worth waiting for!
    The Stars

    Minds are like parachutes: They only function when open.
    Thomas Dewar

    Dont throw away the old bucket until you know whether the new one holds water.
    Swedish Proverb

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What is the best stock to put money in?

    a wonderful place to start is

    from your comments, it would appear that you're looking for investments which will offer you high dividend payments as a source of additional regular short term income ? - as opposed to stocks which pay nothing in the short term but offer the chance for large capital gains in the long term. If so, one stock sector which has recently been 'depressed' but which is now starting to turn around is Natural Gas Royalty stocks like NGT or SJT or MTR or WTU (which I own). You're basically buying a percentage of a natural gas well when you purchase these stocks. These stocks typically pay a very high dividend like 6 to 11%, plus offer a chance for capital gains over time to boot. These stocks are also 'seasonal' though, meaning that their share price tends to go up and down with the seasonal demand for natural gas to fuel home heating and electric power generation (which is why the recent nationwide heat wave has caused an uptick in share prices recently). There might be a good buying opportunity on a 'pullback' sometime in the next few weeks.
    ~
    Last edited by Melonie; 08-12-2006 at 09:52 PM.

  3. #3
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: What is the best stock to put money in?

    The problem in this business is - the more you learn - the more you learn what you don't know!!!

  4. #4
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What is the best stock to put money in?

    ^^^ but the more you learn, eventually you can learn what the 'hot money' / hedge fund / professional investors don't WANT you to learn LOL @[email protected]!

  5. #5
    God/dess leilanicandy's Avatar
    Joined
    Aug 2005
    Location
    where they like American Boys
    Posts
    2,111
    Thanks
    0
    Thanked 4 Times in 4 Posts

    Default Re: What is the best stock to put money in?

    I would not mind somthing that will give me a chance for large capital in the long term. Maybe in a couple of months, But for the gas stocks. How much money to you recommend one should put in them?
    If you want the present to be differant from the past, study the past.
    Baruch Spindza

    It is what it is, not what you want it to become, that's important -- at least for now. Today, remember that things worth having are worth waiting for!
    The Stars

    Minds are like parachutes: They only function when open.
    Thomas Dewar

    Dont throw away the old bucket until you know whether the new one holds water.
    Swedish Proverb

  6. #6
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What is the best stock to put money in?

    ^^^ I really don't feel I can answer a question like that without knowing a lot more about your 'investing style' and other aspects of your personal financial situation. But as a rule of thumb, broker commission costs are such that it usually pays to trade in blocks of at least 100 shares at a time.

    As far as choosing stocks for long term capital gain, one key element is eligibility for lower tax rates by holding the stock for at least 366 days. This implies that your financial situation must be secure enough that there will be no reason you'd be forced to sell sooner than that and get hit with regular tax rates. There's also an issue of diversification, because you're now 'betting' that a particular company / sector / economy is going to continue to do well for the next solid year. If you don't have a 'ton' of cash available to invest, one good way for 'small time' investors to get some diversification without getting killed on mutual fund management fees is to buy shares in Exchange Traded Funds which trade just like stock shares but which include a 'piece' of a large number of different company stocks held by the ETF. A lot of new ETF's have been introduced over the past few months, meaning that today there is probably an ETF available for any market sector that you have a positive feeling about.



    If you have negative feelings about the future of the US economy (as I do) there are also ETF's available that trade on US stock exchanges but which are comprised of the stocks of foreign companies (which is much easier than finding a stockbroker who can directly purchase foreign company stock shares for you on foreign stock exchanges) ... like PGJ for instance.

  7. #7
    God/dess leilanicandy's Avatar
    Joined
    Aug 2005
    Location
    where they like American Boys
    Posts
    2,111
    Thanks
    0
    Thanked 4 Times in 4 Posts

    Default Re: What is the best stock to put money in?

    Thank you Melonie
    If you want the present to be differant from the past, study the past.
    Baruch Spindza

    It is what it is, not what you want it to become, that's important -- at least for now. Today, remember that things worth having are worth waiting for!
    The Stars

    Minds are like parachutes: They only function when open.
    Thomas Dewar

    Dont throw away the old bucket until you know whether the new one holds water.
    Swedish Proverb

  8. #8
    Temporarily Banned Vaughn's Avatar
    Joined
    May 2006
    Location
    USA
    Posts
    246
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What is the best stock to put money in?

    You might consider Johnson & Johnson (JNJ)

    It is targeted for 9% earnings growth over the next 5 years and with 10 drugs up for approval, JNJ is a very safe investment, IMO.

    Another company I am very fond of is ADM - it is a very large and diversified company that is one of the largest agriculture companies and is the largest ethanol supplier in the US.

  9. #9
    Sitri
    Guest

    Default Re: What is the best stock to put money in?

    I would recommend a 5***** Morningside Mutual Fund which will give you diversification. BUT, long term for me is 3-5 years not a couple of months. I currently have Janus Growth and Income JAGIX and Excelsior Value and Restructuring UMBIX as a couple of good funds.

    If you do dollar cost averaging with so much like $100 each month you should do well in a couple of years.

    Melonie has good advice but starting simple will give you the incentive to learn more. Be prepared to watch it go up and down in value.

  10. #10
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What is the best stock to put money in?

    What Sitri and Melonie said. Do your homework! Don't take what Suze Orman and Jim Cramer say without a fat grain of salt.

    But, first, first, first, and let me say first, make sure you have an adequate reserve of cash on hand, equal to 6 months of expenses, or whatever works best for you. You wouldn't want to have to sell a fund/stock at a loss, or at ordinary income taxation, just to pay an emergency bill, for example.

    Stay away from individual stocks for a good long while though, until you have more investable assets and more market saavy.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  11. #11
    Veteran Member
    Joined
    Apr 2006
    Location
    houston
    Posts
    513
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What is the best stock to put money in?

    index fund or mutual fund.

  12. #12
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What is the best stock to put money in?

    index fund or mutual fund
    ^^^ agreed ... but mutual funds always seem to carry those pesky 'management fees', which effectively allows the mutual fund company to 'skim' 2-3% off the top. If the fund's annual increase in share prices of the component stocks is only up say 8%, being left with 5% or 6% can be a bit disappointing. For this reason I prefer index funds, where the embedded costs of operation are embedded in the index fund share price (and which typically doesn't exceed 1%). These days there are a good number of 'sector' and 'specialty' index funds available, so IMHO there is no longer any overriding reason to choose mutual funds. I don't mean to say that some particular mutual funds aren't worth a high management fee to obtain the expertise of a very savvy fund manager in a very dicey sector (one I own is JIGRX), but for common sectors the mutual fund managers aren't really doing anything more than the index fund operators do (other than charging higher fees). I would also add that many mutual funds have now introduced cash penalty charges for 'frequent trading', which can whack you another 2-3% if some new law gets passed or some other world events happen which may prompt you to want to sell quickly to avoid losses. Index funds trade like stock shares so there are no 'frequent trading' restrictions. Also, mutual funds can only be traded at the end of the day while index funds can be bought or sold at any minute the markets are open ... which allows 'stop loss' orders to be implemented for index funds !

    But, first, first, first, and let me say first, make sure you have an adequate reserve of cash on hand, equal to 6 months of expenses, or whatever works best for you. You wouldn't want to have to sell a fund/stock at a loss, or at ordinary income taxation, just to pay an emergency bill, for example.
    This is EXTREMELY important !!! From a dollar and cents standpoint, consider that you bought $5000 worth of shares in company X 6 months ago which is up 15%. Being forced to sell before the 366 day mark means that you'll typically wind up paying 1/3 of the gain = $250 out in taxes, versus paying 15% = $112 in long term cap gains tax if held for 366 days. Also consider a worst case where a 'seasonal' stock has fallen 10% in value but you're forced to sell it at the 6 month mark to pay an emergency bill ... you're out $500, versus holding the stock through the next 'up' seasonal cycle and turning a profit.

    Lots of info re the subtle differences between mutual funds and index funds at ...
    Last edited by Melonie; 08-14-2006 at 02:48 PM.

  13. #13
    Veteran Member KennedyWinters's Avatar
    Joined
    May 2006
    Location
    West Hollywood, CA
    Posts
    225
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What is the best stock to put money in?

    I think is a winner but maybe it's not public? i could live here. it's an idea who's time has come: Healthy fresh convience stores with high quality items. rock it.

  14. #14
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What is the best stock to put money in?

    Famima does indeed appear to be a promising 'niche' business model ... selling a very high quality product at extremely high prices to people that can afford it (newest store is in Hollywood CA for example). However, Famima also serves as an example of a 'diversified investment' - which bears further discussion because lots of companies are structured this way.

    It is possible to invest in Famima, by purchasing shares of the holding company that owns Famima ... . Unfortunately, it is not possible to invest in Famima alone without simultaneously investing in all of the other business operations owned by the same holding company. In the case of Itochu, those other divisions cover the gamut from real estate to textiles to coal / aluminum / uranium mining to chemical fertilizers, with Famina comprising a tiny percentage of total operations. ...

    Thanks for bringing this company to my attention, as it would appear that Itochu is in a 'very interesting' position relative to many promising Asian budiness sectors. These guys obviously know where money is to be made, and obviously don't see a conflict of interest between owning a super-upscale health food business and coal mining / nuclear power plant fuel rod businesses at the same time.
    ~
    Last edited by Melonie; 08-15-2006 at 02:46 AM.

Similar Threads

  1. Club can put my money on hold at managers discretion???
    By Athenathefabulous in forum Stripping (was Stripping General)
    Replies: 12
    Last Post: 11-21-2010, 01:50 PM
  2. How much money do you put away weekly?
    By angelicat in forum Dollar Den
    Replies: 15
    Last Post: 08-25-2008, 03:34 PM
  3. iMput....put it IN, put it IN!!!
    By Bridgette in forum The Lounge
    Replies: 62
    Last Post: 05-13-2007, 06:42 AM
  4. Will my purchase of a penny stock affect the stock price?
    By scarlett_vancouver in forum Dollar Den
    Replies: 3
    Last Post: 01-19-2007, 11:16 AM
  5. Help put a fellow dancer through school (no money required!)
    By TeethOfTheHydra in forum Stripping (was Stripping General)
    Replies: 6
    Last Post: 04-18-2005, 02:37 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •