November 13, 2007
Posted by princess
Is $1000 a substantial amount to start investing in stocks? If so, is it ok to start investing in the 'big' companies? Msft etc?
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November 13, 2007
Posted by invsense
( 1 rating )
On that note, I'm not sure if you are looking to invest for the long- or short-term. Can you comment with your timespan?
In any case, you should first max out your IRA before buying stocks. You do this for tax reasons. Next, I'm recommend looking into buying an index funds before individual stocks. I highly recommend the following index fund: VFINX, please be sure to look into it. if you have question on index funds and why they are better and why Buffett recommends them, feel free to ask another question
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princess:
Thank you so much for your anwer! Adding to my question:
I would like to invest for a long term, atleast a year or 2.
I have no idea what an index fund is!
Sorry, but I'm quite new to this (stocks) -
invsense:
Anytime, this is fantastic. I'd Google for index funds to learn more. here is an article I found on nobosh.com which is good: http://www.nobosh.com/Article/indexfunds/704/
I'm not sure your age, if you are younger you might want to be more aggressive with your investing. Read up on index funds and let me know if you have any questions. If you are thinking about purchasing a particular stock or fund, be sure to ask the group for their thoughts. -
princess:
Thats perfect! I'm 24 so by aggressive you mean high risk right? Which will be the small caps if I'm not wrong?
I shall definitely do my research! Thank you! I love apple for this & obviously my iPhone! :)
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May 15, 2008
Posted by knor208
( 1 rating )
One otheridea to keepin mind. When you read about investing for the long term that means usually for at least a market cycle. A market cycle is anywhere from 3-7 years. By conventional terms 1-2 years would be considered a medium or even a short term investment. If your lookingfor a big company look at EMC. While not as large as MSFT it still has some growth ahead of it. The price of the stock is down but profits are up so the stock price should start recovering. EMC alsoowns a mjority chunk of VMW. VMW dominates the virtual server market but the value of emc's holdings is not reflected in EMC stock. So when it is recognized by the market that price of EMC could double on just that , not including thier own profits.
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