Stocks for 2011

[the.gladiator1987]

Alright guys, im 21. Starting out on sharebuilder.com, I like it a lot. I havent bought any stocks yet but I am about to set up my automatic investment plan so that it takes a certain amount every month for each one of my stocks.

I know stocks is just like gambling, you just dont know if you are going to get some money back or not. But I am young and am willing to take the risk.

First of all, I am starting 3 different savings - one emergency savings just through my bank. For long term savings I am going to be buying silver coins, bags of them. After I put money into those I will put money into stocks

I have been researching and it seems best to diversify, but mutual funds are too low of risk for me. So I wanna maybe try out 5-6 companies. I was thinking

HL - Hecla Mining
MCD - McDonalds
RL - Ralph Lauren
CEO - China National Offshore Oil
V - Visa
ZLCS - Zalicus Biotech Health

HL is silver mining camp, no questions asked I am def going with that one. The other ones are just ones I have researched that seem to have potential of growth. McDonalds because it is huge and always coming out with new smoothies, burgers, etc. Ralph Lauren because it has just started going worldwide. China National Offshore oil because chinas economy is doing good and oil is doing good. Visa because 60% of people still use cash and checks, so theres bound to be growth. Zalicus Biotech Health because it is in the health field with low stock prices right now

 

[the.gladiator1987]

bump

 

[flex229]

If I were you, I'd substitute that biotech company with a more established medical company like SNY or MRK or PFE, etc...

Your picks, altogether, will subject you to a lot of risk (particularly in Hecla and the Chinese oil company), and as a novice investor, I fear you are not prepared to handle that risk...

using my suggestion, I think you can reduce some of that risk, while getting some dividends and stability and perhaps a little growth.

Just my humble opinion.

 

[the.gladiator1987]

How much is the minimum you would put into a company?

Is it an amount, or is it the number of shares? I guess its all really the same, 500 dollars invested in 3 shares is the same as 100 shares.

Also how do you do dividends?

 

[flex229]

My personal philosophy is to never put less than $2500 into one particular stock.

Dividends- say you open up an online account and purchase a stock that pays dividends. What that means is that in your account, a few times a year, you will see cash payments posted to your account automatically. Refer to the dividend yield of the particular stock you are purchasing to estimate how much they will pay you. Note that sometimes, companies suspend such payments altogether or decrease them. On the flip side, companies may also initiate or increase dividend yields.


My advice to you is: before you purchase anything, go purchase a good investing book that will explain all these concepts to you. It is obvious to me that you are a novice, and that you have a lot to learn before you go plopping money down in the stock market. (If you must put some money down right now, purchase a good mutual fund or two...I like Fidelity's funds....I, personally, have done very well with mutual funds....check out Morningstar.com, which is a company that explains funds at length and ranks them using a star system)...

you have a lot to learn, and the more you learn, the less risk you are likely to have...KNOWLEDGE IS POWER!


good luck, bro..

How much is the minimum you would put into a company?

Is it an amount, or is it the number of shares? I guess its all really the same, 500 dollars invested in 3 shares is the same as 100 shares.

Also how do you do dividends?

 

[flex229]

and i just read your original post more carefully.

you might want to re-think your investment in silver coins. You will already be invested in silver throught that stock. You NEVER want too much exposure to any one sector or commodity. The fact that everyone (including yourself) on the board is so hard-up about silver tells me a few things: there are probably tons of other people not on this board hard-up for that commodity. This indicates, to me, that silver may be in a bubble. In fact, I am pretty certain it is, even in light of the very recent commodities sell-off.

Also, I read that you are adverse to investing in mutual funds..please re-think that. There are tons of funds that are high-risk and high-return. I would rather you invest in one of those than invest in individual stocks at this point, for a number of reasons.

I have made a ton of money with mutual funds..PM me if you want to know a few of mine..(I don't want to post openly which funds I own, for various reasons.)