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What is the best investment?

alphieb

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Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
 

cnredd

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Michael Moore is doing very wll with his Halliburton stock...
 
H

hipsterdufus

cnredd said:
Michael Moore is doing very wll with his Halliburton stock...
It's too late to get into Haliburton now. Cheney's stock options went up 3,000% in 04.

Buy low - sell high.
 

alphieb

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hipsterdufus said:
It's too late to get into Haliburton now. Cheney's stock options went up 3,000% in 04.

Buy low - sell high.
Correct, and don't follow the thundering herd. The problem with buying low is, will it go belly up? In essence, it is gambling and utter luck. I bought sun micro systems a couple years ago at $7.00 per share and sold it at $5.50. I don't know what it is per share now, but I felt lucky that I did not take that great of a loss. I also bought Oracle and made a small gain. It actually just balanced out even between Oracle and Sun.

I think it is important to look at PE ratios. I have also learned not to put all my eggs in one basket. That is why I'm doing a Mutual Fund now. Watch for percentages that brokers charge also.

I wish I had a home in California now, before that insane bubble burst.
 

alphieb

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Bond funds might be a good investmate after interest rates increase. Now it would be simply crazy. If you have the balls, try commodities.
 

oldreliable67

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alphieb said:
Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
Impossible to say without knowing much more about you: your age, your income, the amount you have available and are willing to risk/invest, your objectives, your tolerance for risk, your time horizon, the time that you are willing to or wish to devote to monitoring your investments, and others. The best investment for one person may be the worst for someone else. For example, you mentioned buying Sun at 7 and selling it at 5 1/2. That trade suggests a willingness to be somewhat aggresive. But on the other hand, you are have purchased a Vanguard Index Fund, a much more conservative type of investment.

So, what are you? A trader with a short-term horizon (SUNW), or a longer-term investor looking for appreciation at least equal to the overall market (an index fund)?

Though I am a twenty five year veteran of Wall St and made my living by trading for many years, the only advice that I will give you is to (1) take maximum advantage of tax-deferred programs, and (2) clearly define what you want from your activity.

For many people, and especially younger people working for a salary and without a large investable pool, the best investment vehicle by far is either a 401(k) or an IRA. The tax advantages over the longer run are simply too great to be ignored. Use a self-directed IRA or 401(k) if you must, but by all means take advantage of the ability of these vehicles to accumulate tax free. Over the long run, it is a huge advantage.

Other than that, if you still have the urge and have investable funds, you must then decide what you want out of it (the fun of trading, the satisfaction of long-term trading, or whatever). Once you have decided, its time to educate yourself on the ins and outs of your chosen approach. Read voraciously, discount much of what you read. Everybody is an expert. Everybody wants to help you - as long as there is something in it for them.

Jeez, sorry, didn't mean to carry on so long! Hope this helps and best of luck.
 

UtahBill

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Long term, real estate is as good as anything else. Read that in a book called "A random walk down Wall Street". Pay off your house first, then buy another to rent out, but make it one that you wouldn't mind living in yourself. Always have 2, one big enough for your needs as a family, and the other smaller for when you don't need the big house anymore. Live in the one that suits your current needs, and rent out the other.
 

TimmyBoy

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alphieb said:


Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
Investing in an index fund, as long as you are doing it as investment and not some kind of day trader and you hold it long term, is actually a smart buy. But if you are interested in individual stocks, I think Wal Mart and Anhiezer Busch is a good stock buy. Real Estate is not bad, but like the stock market, you really have to do your homework, because you could end up paying way too much for land that is actually worth less and has no potential to go up in value. Real Estate and buying value stocks (by value, stocks whose price is lower than it's fair market value). Generally, the ideal situation is to buy stock that has a price to sales ratio of 1.0 or less along with PE ratio of 10 or less. Price Earnings ratio is the price per share of stock divided by the earnings per share of the stock, the lower the number, the better. Price to sales ratio is the price per share of stock to the per share sales. Sometimes, it's safe to buy stock that is slightly higher than 10 in the PE ratio but has a very low P/S ratio. It's more difficult to play accounting tricks with the P/S ratio, but the earnings, CEOs have a much easier time playing accounting tricks and thus can manipulate the P/E ratio. Both real estate and stocks are good buys, but you got to do your homework and you got to know what you are doing. Don't buy anything until you understand what you are doing.
 

TimmyBoy

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alphieb said:


Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
My advice to you is when you get the money, buy "The Intelligent Investor" by Benjamin Graham and also his book "Technical Analysis." In the newest edition of "The Intelligent Investor" they talk about Index funds and how generally, over the long term, most mutual fund managers fail to "beat the market" over the long term and that buying index funds is generally a smart buy. But remember, be an investor and not a day trader. But the money spent on "The Intelligent Investor" is worth every penny and is a classic that has stood the test of time. Warren Buffet was a student of Benjamin Graham. Don't try to be like Warren Buffet, learn from Benjamin Graham and Warren Buffet and come up with your own style of investing that is smart. Greatness can only come by being yourself.
 

ptsdkid

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Best long term investment has to be any baby products. I highly recommend Johnson & Johnson baby powder and baby oils. Once Roe v Wade gets overturned in the next couple of years--you'll be seeing another baby boom like we saw right after WWII.
 

HighSpeed

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Your questions is vague.

Here are my answers to you:

1. Own a home

2. Invest in yourself, education etc.

3. Participate in the 401k plan at your work, if its available.

4. Participate in a Roth IRA.

Hope that helps. If you want to do stocks, that's a different ball game.
 

Jerry

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alphieb said:


Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
GOLD! Buy GOLD! American Gold Eagles. Silver is good also. Don't just buy shears in gold, or Diamond Certificates, take delivery, put it in a good safe.
 

Kandahar

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Jerry said:
GOLD! Buy GOLD! American Gold Eagles. Silver is good also. Don't just buy shears in gold, or Diamond Certificates, take delivery, put it in a good safe.

Commodities are EXTREMELY volatile and are terrible investments in the long run. In the short term, you're just gambling. If you're investing in gold or silver, I suggest you take your money to Vegas instead. You'll have more fun.
 

Jerry

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Kandahar said:
Commodities are EXTREMELY volatile and are terrible investments in the long run. In the short term, you're just gambling. If you're investing in gold or silver, I suggest you take your money to Vegas instead. You'll have more fun.
I'm going to have to disagree with you here, the numbers are in my favor. When I started buying gold it sold for @$350.00 an ounce. Today's N.Y. spot market shows gold at $586.23. My investment has nearly doubled in value.

In a worse case scenario, should there be a stockmarket crash due to some terrorist attack or similar, my gold will have street value all on it's own, where as stock certificates would only be good for fire tinder and t.p.
 

Pacridge

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HighSpeed said:
Your questions is vague.

Here are my answers to you:

1. Own a home

2. Invest in yourself, education etc.

3. Participate in the 401k plan at your work, if its available.

4. Participate in a Roth IRA.

Hope that helps. If you want to do stocks, that's a different ball game.

That's very good advice. Though if you got all that I'd do a Mutual Fund as well. But get those first four covered.
 

teacher

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alphieb said:

Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
Monkey Pez dispensers. Spam (the canned meat). Monty Python releases on DVD. Galenrox's upcoming book "I'm the gayest man that has ever lived." Huskavana's new back hair trimmer, (I have it on good authority Billo will be endorsing it). Diamonds (only because men are suckers for trim). Bottled water (have you seen the profit margin on this stuff. The overhead is some guy with a hose). Beer.
 

128shot

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Real Estate is a good investment.
 

Ivan The Terrible

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Ivan The Terrible, Your Master, has entered the debate!
 

Ivan The Terrible

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1. Own a home

2. Invest in yourself, education etc.

3. Participate in the 401k plan at your work, if its available.

4. Participate in a Roth IRA.
I agree with HighSpeed. However, I see no mention of CDs. They have a pretty good rate of return and are safer that the market are they not?
 

Lantzolot

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I'm thinking gold is good to invest in now. It is about $550 per ounce currently it was $400 a year ago and its expected to rise to $700+. But one thing to watch out for is a sharp drop. It expected to fall back to $400ish.
 

Stinger

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alphieb said:
Does anyone have any ideas on what the best investment would be? I have invested in a mutual fund index 500 through vanguard.
Me...........send you check to..........

Depends on lots of factors, if you have to ask then you need a financial advisor, go to one of the big name houses and tell them what your goals are and your comfort level and they will put together a plan.
 

Ivan The Terrible

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Gallon Rocks!

Well the rate of return and risk tend to go hand in hand. For example, a government bond pays a lower rate of return than a GM bond, solely because the government won't be going under or declaring bankruptcy, while GM is far more likely to.
Your Master will keep that in mind. However, you were foolish to reveal your investment knowledge.
 

RidinHighSpeeds

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HighSpeed said:
Your questions is vague.

Here are my answers to you:

1. Own a home

2. Invest in yourself, education etc.

3. Participate in the 401k plan at your work, if its available.

4. Participate in a Roth IRA.

Hope that helps. If you want to do stocks, that's a different ball game.
Just about the best advice for anyone. :cool:
 
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