Is now a good time to buy stock in Intel? |
| I am planning on buying about $200 worth of INTC tomorrow and buying an additional $50 worth each month. Is this a good plan or have I missed the boat (Intel dipped for a bit and now is back up on a ... |
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What is mutual fund ?? on bignner level what should i do ?? |
| should i buy stock from company online or should i Mutual FUNDS ?? but i don't know how to get into Mutual Funds....I really want to save my money by using that and want to make my additional ... |
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After Warren Buffett Dies what will happen to Berkshire Hathaway? |
| Would Berkshire Hathaway still be a profitable company like how Warren Buffett managed it?... |
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About how much time does it take to learn enought about the stock market to start investing??? |
| About how much time does it take to learn enought about the stock market to start investing???...Be Honest..... |
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Can U.S citizens invest in the Federal Reserve? |
| I heard that the federal reserve is owned by other people in other countires ,is there a way people can invest in the Federal reserve .... |
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Can i still buy Washington Mutual Stock? |
First i'm curious, is WM out or has it been bought?
i'm just thinking that if it isn't out yet and if i buy it's stock, then i could probably make a lot of money. so is it... |
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How can I determine if a fee for a financial adviser is a reasonable one? |
| I make a modest income (40K), only own a car and a home, nothing fancy and am just looking to start saving for retirement and protect what little assets I have! The annual fee suggested by this ... |
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What about 401k? |
| I have a friend who is going back to school and will not be working. What should he do about his 401k?... |
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How does buying stock work exactly? |
| I'm looking to purchase about $300-$500 worth of stock, mainly just for fun, and was wondering how exactly does that work. I know you have to go through a broker or a site like scotttrade.com, ... |
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FINACIAL DECISION. PLEASE HELP- ? |
hello
Yesterday i decided to buy 3 stocks.
ambac financial group (ABK) 2000 shares for $1.26 each
American insurance group (AIG) 3000 shares for $1.76 each
F... |
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Might astrology be useful for investing in the stock, futures, or forex market as a self-fulfilling prophecy? |
Please note, that I do NOT believe in the validity of astrology
itself.
Nonetheless, human beings are superstitious beings and
every year that goes by, not only does "New Age M... |
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valkscool | How many stocks should i invest in? |
Additional Details that i can make the most money off of
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LoDell
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If you think your stock picking skill is good, you know what's going on in the market and you think you can beat the market, then you can build a profolio with around 6 to 12 stocks. The weight of every stock should be approximate the same, also you should have at least 10 to 30 % of the profolio in cash, which serve both as a cash cushion and the fund for potential investment in the future.
If you think you are not that good as a stock picker, you should put your money into US index fund, treasury bond and foreign index fund instead. The ratio of these 3 depend on how old you are now. If you are young, should be 40:20:40; if you are older, it should be 30:40:30. Notice that I put US index fund and foreign index fund in the same weight, that's because in the future, foreign investing is going to be more and more important. A trend that cannot be reversed. |
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dllou1
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You should invest in hundreds/thousands of stocks by investing in a proper mix of Index Mutual Funds. Develop a good asset allocation plan and stick to it for the best long-term results. |
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from me to you
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It isn't so much how many, but what quality? Pick a mutual fund that is diversified in stocks that you feel will increase in value.
If you'd rather invest in individual stocks, again, diversify and invest your money evenly in different sectors like oil, technology, health, and retail.
Always make sure you have some money left over so you can buy stocks whenever the market has a downturn and stocks go "on sale." |
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muncie birder
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There have been a number of books written on this subject. And are still being written I might add. You have received a number of responses to invest in index funds. They certainly do have a place in investment strategies, but they also have a number of deficiencies, which unfortunately are glossed over.
To specifically answer your question, most authorities suggest a minimum of about 10 different stocks to minimize specific risk. Beyond about 30 different stocks, managing ones portfolio becomes somewhat of a challenge. And as other responders have mentioned, if your 10 stocks were all internet stocks, the specific risk of such a strategy would be about the same as buying 1 internet stock. In other words it is important that ones portfolio be diversified to minimize specific risk. Another thing that in my opinion is a mistaken belief is that a large portion of ones portfolio should be invested in U S stocks. The world capitalization of stocks is only about 40% U S if my information is correct. There is a Vanguard Fund that attempts to closely match the world capitalization more or less--VHGEX. Currently about 38% U S.
Also as has already been mentioned, it is not so much how many you own but what you own that counts, but if you can not afford to own at least 5 different stocks then a mutual fund is perhaps a better alternative. |
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Ranto
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To get the value of diversification, you should have at least 30 stocks.
You don't have to do this all at once. Start off putting most of your money in a mutual fund. Then you add individual stocks to your portfolio through time. |
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The Shadow
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It's not just a question of how many. Owing twenty stocks in one industry is not necessarily a good thing. You also need to pay attention to diversification by buying stocks in different industries. Otherwise, you are taking a lot of unnecessary risk.
You can achieve good diversification by owning 8-10 stocks that are in different industries. If you don't have enough money, start with mutual funds and add individual stocks when you can afford it. |
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voluntarheel
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You need index mutual funds to properly be diversified - including international index funds. I have 3 index funds (1 int'l, 2 domestic) and about 8 different stocks. But at least 50% of my portfolio is in those index funds so I don't lose my shirt if something weird happens on the market to one sector.
If you go with individual stocks you would have to buy too many to monitor in order to be properly diversified. |
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