What is the best type of stock to invest in? I'm new at it?

Answer 1

Mutual Funds are good first investments. A Mutual Fund has a manager that studies stocks and picks the best ones for the portfolio. They usually have rules like 35% of the fund is in tranportation stocks, 35% in Retail Companies and 10% in oil or something like that.

Study Mutual funds on Morningstar.com They allow you to search for funds that fit your needs. I would choose a high yield, low risk fund. Find out what they own and decide if you think that sector will do well and buy one. You don't need to diversify with a Mutual Fund it is diversified in itself as it owns several stocks at one time. Morningstar.com is free for most things you will need to research to choose the fund for you. On Morningstar you can see what a Fund owns and after you buy it you get the list of stocks in the mail from the Fund directly

Answer 2

After reading all of the answers, the one that appears the best to me for a new investor, is the one from KC. Invest in mutual funds. But mutual funds are just like stocks. There are good ones and not so good ones. About 70% of mutual funds underperform the market in general. You have to be choosy.

I do not think there is any one best type of stock to invest in. Most successful investors have a somewhat diversified portfolio of stocks. The thought is that with just one or two stocks you leave yourself vulnerable to a disaster for those companies wiping out all of your assets. Enron, World Com, etc.

That is one reason mutual funds are so attractive. They provide diversification for a small time investor.

On the flip side of the coin, if you were to find one company that you thought was a slam dunk and put all of your money into it and you happened to be correct then you would make more money doing that then investing in a mutual fund. But finding slam dunks is not an easy task and again if you happen to be wrong, you may loose everything you invested. It has happened to more investors than you can imagine.

Answer 3

You may find you can do better investing in an Index fund?

Ask the question of someone that gets paid to give advice with nothing else to sell and check their "track record".

Answer 4

My bookie (broker) suggests that you get a diversity of Mutual funds.

But I look at a number of Fortune 500 companies as managed mutual funds. These are companies that own companies.

Here are some examples: GE, GM, FO, DHR

When you look at these four, you want to then COMPARE their performance over the last 5 years, and decide if you agree with their leaders as to the types of companies that they own.

Take GE. Jet Engines, Electronics, Electrical. Sounds pretty cool, but who the heck wants to buy a jet now-days

Then look at GM. Gee, they look like they have their troubles.

Then look at FO. This company owns just about every brand that you can think of. HEY, they even own Tiger Woods. (Titlist)

Then look at DHR. Electronics, Tools, Medical. Sounds pretty good.

The gambling industry seems to be doing good. Look at MGM.

Answer 5

If you're new, stick within your budget. Pick cheap stocks that are under a dollar or two. Read lots of stock message boards on the internet, they have great information. And pick up any courses you see advertised on informercials. They guarantee success.

Answer 6

Find out what you like get a newspaper to see if you can spot your stock and go from there. Also you can talk to someone at your bank too.

LC

Answer 7

If you are new and want to begin, I believe mutual funds offer an excellent starting point, and in particular, I suggest you select one or two broad market index funds to start off with.

Answer 8

Invest in what you know.

Answer 9

invest now and invest with westpac share are down or atleast they are in australia!!!!!111

Answer 10

the best place to invest your money is in yourself. no one will take better care of you mone then you...so take care of yourself.