Finally texxx hits the nail on the head. Investing in individual stocks is roulette, ETFs and Mutual funds are the way to go -- why small investors still do it is beyond me
As a fund manager, my firm and myself are invested in several mid to longer term opportunities here. But since you are a retail customer, I would just suggest the ETF's( QQQQ and SPY)
I don't believe that any individual investor (outside of insider information) can consistently beat the market and yet people are convinced they can. For every winner, they usually have an equal or worse loser. And what also happens is if they have a winner, they don't know when to take the money off the table and even after a successful "investment", they usually do not reinvest it prudently.
I think you can, BUT, you have to study it, and most people do not put the time in necessary to make mostly winners. There are trends that are easily recognizable, and money can be made....but you have to be constantly monitoring things. I am completely in Mutual funds and bonds etc.....and for the year I am already up about 15% on my totaly portfolio..... It has been a good year. DD
If you're in mutual funds, you're not in individual securities. I was referring to individual stock selection.
I'm more interested in investing in industries or cycles than individual stocks. I still invest in individual securities, but most of my money is always tied up in funds.
Recent events on the market, the Great Crash of '87, the Friday the 13th Mini-meltdown, the ills of Program Trading, insider trading, leveraged buy-outs, etc., have also contributed to the casino image associated with stock investing. To a large degree, the investment community is their own worst enemy in scaring off the individual investor. That is very unfortunate because stock investing is one of the best avenues the average person has of has of accumulating substantial wealth. And it really doesn't have to be very risky. Here's how to make good money in stocks with low risk: 1. Buy stocks with consistent, predictable earnings growth. Buy stocks with earnings growth rates of at least equal to the sum of current inflation and interest rates. 2. Diversify. - Do not put more than 10% of your money into any single stock. - Do not own more than 2 stocks in the same industry. 3. Do not plunge into the market. Spread your investments over time. 4. Use Stop-Sell orders to limit risk. Stocks with consistent, predictable earnings growth are the safest stocks you can buy. They represent the best managed companies in America. A stock portfolio with an average earnings growth rate of at least 14%/yr. has a high probability of doubling in five years. In twenty years, it will have increased by 1,500 percent. If you bought 10 stocks, and limited your loss on any single stock to 10% by using Stop-Sell orders, your total portfolio risk is only 10%. Your risk on any single stock is only 1% of your total portfolio. How many investments can you think of that have the upside potential of stocks with such limited risk exposure?
What is the minimum initial investment for this fund that you're in? I'm looking at getting into something similar for my IRA, but I need a low minimum.
figured i'd rehash this thread since i had a recommendation... buy TOM since they just got bought out for 16.80. trading down due to lower than expected buyout price. right now the spread is 90 cents and the deal is expected to close in spring 06, so it will be relatively quick. from what i understand this deal is pretty rock solid so i don't think there will be hang ups in it going thru. something to look at if you are interested...
ELN - health company Elan which produces Tsyabri, the only major medication for MS. it was up around 70, but then fell harsh when it got pulled from the market because of 2 patients dying...now they are awaiting approval again and have all the potential in the world to shoot back up to and maybe surpass 70. it currently is selling for 13.63. i bought it at of of it's lowest moments, 8.
