New to investing

Posted by BBrown on March 13, 2012 (11:34PM)

Hello everyone I'm new to investing and am hoping some of you could help me out a little.  I am depositing 3000 dollars into my account.  I am not looking to make a fortune right away but I would like to get off to a good start so I have some room for error in the future.  A couple stocks i read about and am highly considering are ALU and AGNC.  I would like any input on these two stocks and also some stocks that you think are worth investing in to get off to a decent start.  Also i know I shouldn't put too much percent of my bankroll into one stock but if I get too many with this bankroll the fees will eat it up so I'm wondering what's a good number of stocks to hold with this bankroll.  I plan on depositing 1,000 dollars every two months or so.  Also, any tips on investing in general would be greatly appreciated.

Posted by treeHamster on March 13, 2012 (11:43PM)

I always like to watch earnings season for a companies that get a bad quarter in a string of decent to great quarters (could be an outlier) and then look to maybe invest in them. An example is AAPL back in October when it missed earnings and tanked to the $370 range. It's now trading at 60% higher than that which would have been an insane return for an investor in 6 months. Another would to have watched something like STX (Seagate). It was undervalued for years and has had a number of major breakthroughs lately to give it a push back against Western Digital and it's skyrocketing without a roof in sight.

Posted by guitarmanken on March 14, 2012 (03:54PM)

      Some of my favorite stocks that have shown consistent growth for over 10 yrs and have good dividends are KMP, SXL, EPD, RAI. PM, ARLP, SCCO. Gold. Just to name a few. Check them out. Hope it helps. Stay away from options. Most new guy's loose there money when they try to trade options.

Posted by TampaJake on March 14, 2012 (05:39PM)

I like 3 stocks with $3000 invested. Maybe add one stock for each $1000 you add until you get to a comfortable level. For me that is 10, but for SPshapiro who has been around since the stock market began the number is something like 42. His portfolio is over 200K so 42 is fine for that size. Everyone's comfort level and risk toleranance is different. Once you find your comfort level you can systematically add to each position as long as you still believe in the fundamentals you see.

I like AGNC and do own it. I do not follow ALU.

Posted by filpa on April 03, 2012 (05:13AM)

The investment by the International Finance Corporation is being made into Leopard Capital's Haiti Fund, a new group that plans to invest in small and medium-size businesses after similar success in Cambodia.In the investing game, the dumb money wins.


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Posted by papermaker67 on April 03, 2012 (08:27AM)


Good thought on 1000 per position.

Stay away from Options and leveraged ETF/ETNs

Learn how to read fundamentals

Seek sustainable dividend yield

I read Barrons and have found it very helpful.

Posted by spshapiro on April 03, 2012 (08:57AM)

I am not at the start of this game so comparing the number of my holding to a newbie’s is useless, at best. You seem to be aware that when you have a small amount to invest, you are best not to spread it too thin so that commissions eat up a large percentage of your capital. I am assuming that you also are aware that being diversified gives you a measure of protection; well, you can’t have both protection and a small amount of capital. Okay, someone is going to tell you to buy a mutual fund or an ETF. Oh, I see someone has suggested that you sink it all in the poorest nation in the hemisphere. Although funds will yield some diversification (depending on their scope), they do it at a price. You will be charged fees, some explicit, and most that you never realize (understand) until too late. For those who really don’t have the time or interest, buying truly low cost mutual funds, are the way to go.

So what to do?  I know you don’t want to hear this, “Get an education first.”  The time and energy you invest in that, will pay off far more down the road than any hot tip. If you have a burning desire to spend what’s in your account, and you are of age, I suggest you go buy a bottle of good red and sit in a shady spot until the urge passes. When you have down your research, buy a stock that you would feel would be worth leaving in your estate, and go back and do more research before you buy the next one.

Finally, and this is more important than the above, open an Excel spreadsheet and keep track of what you bought, for what price (including commissions), and track it over time. Yes, write it down. I know you can look it up. I know others can keep the record for you. Do it yourself; it will concentrate your mind. It will make it harder for you to not confront your mistakes, and you will make mistakes (we all do.) The point of this exercise, besides making doing your taxes less painful, is that if you confront your mistakes, you are less likely to repeat them, and that usually makes you a winner over time.    

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