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I have a sum of $20,000 to $30,000 earmarked for investment in stocks and currently have accounts with both Fidelity and Ameritrade. My investment strategy involves a mix of short-term and long-term holdings. Could anyone offer insights or recommendations on promising stocks? I've been considering the following:
Short-term stocks:
TSLA (Tesla)
AMZN (Amazon)
Long-term stocks:
Microsoft (MSFT)
Any guidance or suggestions on these stocks or others would be greatly appreciated. Thank you in advance for your assistance.
I am also fairly new to investing, about three years in, and didn't start until I was a crone. Read Investopedia to learn basics.
I did eventually invest in three individual stocks. One is the company my daughter works for (that one is doing very well), one is the company my sister works for (meh, up and down), one is a cannabis stock that grows in my state, went south really fast, lol, pulling up a bit but still a loss to me. Won't put me in the poorhouse because I only invested a little to play.
Most of my investment is in an S&P 500 index fund.
But here is something with which you can never go wrong: Advise is a verb. Advice is a noun. Posters can advise you on how to invest. What they give you is advice.
Since I don't possess the power to predict the stock market but do possess the power to edit, I fixed your thread title.
I have a sum of $20,000 to $30,000 earmarked for investment in stocks and currently have accounts with both Fidelity and Ameritrade. My investment strategy involves a mix of short-term and long-term holdings. Could anyone offer insights or recommendations on promising stocks? I've been considering the following:
Short-term stocks:
TSLA (Tesla)
AMZN (Amazon)
Long-term stocks:
Microsoft (MSFT)
Any guidance or suggestions on these stocks or others would be greatly appreciated. Thank you in advance for your assistance.
Wasn't Ameritrade bought out by Charles Schwab?
Rather than individual stocks, Schwab has a dividend index fund SCHD that holds shares in top companies which pay out some of their profits as dividends. The current yield is 3.3% which you can reinvest. The fund is very low-fee, 0.06%. I am sure that Fidelity has something similar.
Other than that, stick with an index fund as others have suggested.
Tesla is more speculative than the other two. A lot of its market value is based on robo-taxi business, which of course doesn't exist yet.
Amazon and Microsoft are fine companies, but they're gigantic today with shares that are not undervalued. Not sure what the draw is at this point? If you wish to outperform, you should be looking at smaller companies than these. That's advice from Warren Buffett when asked what he would do to invest a small amount of money.
Quote:
Buffett recommends investing in small companies. Large investors — like Buffett — and funds tend to place focus on larger companies, which means small business stocks will have less competition, allowing someone with $10,000 to find some hidden gems.
Nevertheless, Buffett said the only way to multiply your money is to buy into good businesses by buying pieces of them — aka stocks — at attractive prices.
Buffett said if he was just getting out of school and had $10,000 to invest, he’d begin by looking at companies that have names that start with “A” and continue down the list, focusing on smaller companies to find the ones he wanted to invest in.
It would help to know what are your goals. Is this just a start, and you're planning to add more stocks to your account over time? It would also help to know what "short-term" and "long-term" mean to you.
I suggest SCHD (Schwab Dividend Equity ETF) or SPY (S&P 500 ETF). I've owned SCHD for many years and in tend to own it many more. VIG, (Vanguard Dividend Appreciation ETF) is another of my long term holdings.
The OP does not define what they mean by "Short-term stocks" versus long-term stocks. By definition, short term is less than 12 months, while long term is 12 months or longer. Short term investing is risky and has unfavorable tax implications. Buying stocks for the short-term is trading, not investing. The OP should instead invest for the long-term and only buy stocks they plan on holding longer than a year. Since their investment knowledge is limited, I agree with the person who suggested they should avoid individual stocks and put it into an S&P500 index fund.
I'm also confused on why they deem Amazon a short-term stock? Amazon has been a terrific long-term hold. It has outperformed about 99% of stocks over the past 2 decades.
I'm also confused on why they deem Amazon a short-term stock? Amazon has been a terrific long-term hold. It has outperformed about 99% of stocks over the past 2 decades.
Sure, but now it's an enormous company. It's probably an okay hold, but the growth will be less going forward.
Quote:
Data shows that over time, stocks tend to perform worse than the market in the years after becoming one of the largest public companies.
I am also fairly new to investing, about three years in, and didn't start until I was a crone. Read Bogleheads or Investopedia to learn basics.
Hopefully it doesn't violate the TOS to admit that most of my investment/financial reading and posting. What we have in our community here is an overwhelming emphasis on trading, individual stocks and market timing. Thus the OP's question fits right in. I wouldn't be surprised to see a raucous debate on which hot stock is hotter than than other hot stocks.
Also, what is "long term"? Six months? A year?
Last edited by Yac; 05-08-2024 at 02:02 AM..
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