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I suggest a broad market ETF as well. If you think the market is going up this year, UPRO is a pretty good ETF to own.
Oakmark mutual fund is a good one as well. Their research is extensive and investment philosophy is sound. Expense seems reasonable for this kind of fund. I recommend holding a fund while learning more about investing. Last edited by lildimsum7; 01-05-2013 at 09:10 PM.. |
| 01-04-2013, 07:20 PM | |
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If you don't want to be always watching your stocks, stay out o tech stocks (single stocks, not etf's or muruals.
The best advice if you are starting ou, is to read as much as your can. Here's a couple: Beating the street: it's old but, great basics snowball: te best ever written about Buffett Graham and dodds book on valuation: very intense but a staple in any school geared for investment graduates. Also motley fool is a great place to learn more info. As home values go up nd hiring picks up banking will be a safe place for te next few years. Tey are vein ultra safe and conservative right now and they already have done all the declining you are going to see. |
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+1 A lot of actively managed mutual funds can't beat the index, especially when you consider cost. So the average investor probably won't, either. Go with the S&P index and mix in bonds, TIPS, etc to get to your desired risk level. |
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Thanks for the tips everyone. So, it sounds like my idea of buying a handful of companies I like is not the best route, and an index is a safer bet.
When you buy an index, do you buy it share by share? I see the S&P is at roughly $1465+ per share. Are there any minimums when buying indexes? Can I use a standard account like e-trade or a similiar one to purchase those index stocks? I'm totally green when it comes to stocks, I had some knowledge in the past but it was basic so i'm basically a complete newbie. Thanks everyone! |
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DOW symbol is (DIA)
S&P 500 symbol is (SPY) Nasdaq symbol is (QQQ) They are priced well below the actual index, so buying SPY buys you approx 1/10 share of the S&P. DIA is similar, and QQQ is some other fraction. You can buy and sell these just like stock. No minimums or special accounts needed, but you need to realize there is a fee, something very small like .09% per year for holding. |
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Just open an account at any of the major brokerages and park your money in a mix of their commission-free ETF's. Chances are you will not make much of anything inflation-indexed over time, but then you're not taking much risk either.
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The question is whether you want to play it safe and get minor returns (under 2.5%), or take on risk and get major returns (10% return a month or more). I am currently in the following: CLWR (buyout from Sprint and now there is a bidding war. Bought it for around $1.60, currently $3+, expected to hit $5+) BA (It has recently taken a hit from the minor problems with the 787, once the problem is fixed it should return to the $77-$78 level.) AAPL (Always been long. I bought on the dip, you should wait for a dip and get into it, however it is ridiculously expensive) Most of the companies on your list are there because you shop or own their products. I would recommend not to go with your favorite companies but rather the ones that have the highest expected growth. I would take AMD over Intel since AMD is expected to pop since it is gaining desktop marketshare as well as the go to company for Microsoft's new tablet. SlickDeals for 2012:
2X iPad 3 64GB Wifi Edition ($400) 1X $30 Amazon Promo Code ($0) 1X Lexmark Pro905 All-In-One Color Printer ($0.01) 15X 2TB 7200RPM HDD ($26) 1X 11" Dual Core i5 2011 Macbook Air ($700) 22X 500GB WD USB 3.0 Portable HDD ($27) 8X Battlefield 3 for PS3 and Xbox 360 ($7.50) Total Savings this year: $4350 |
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