2006-07-05 02:47:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
I can email you two stocks if you want.
Top 4 Answerer in Business & Finance. (Vote for me. I just need 200 more votes)
2006-07-05 10:16:33 · answer #1 · answered by Anonymous · 0⤊ 4⤋
If you are asking that question in this forum, you are obviously a naive investor. You should avoid buying individual stocks and put your money in a no-load mutual fund.
There is an answer to the questin as you have it stated. Companies that are riskier than the market (beta greater than one) are likely to putperform the market. However, you are probably interested in performance adjusted for risk.
The fact is that if anyone knew of a stock that was going to ourperform, they would buy it & that would bid up the price, making it less likely to outperform for later investors.
Academic studies show that new information gets imbedded in prices almost immediately. That means that if someone tells you here that there is good news for a company, that good news is already priced in.
The only way to beat the market is to have private information. There are three ways to get private information. One is to have insider information (which is usually illegal to use in tradnig). One way is to pay for it -- taking away the advantage. The third way is to gather up all public information on your own & glean information from it -- leading you to realize the private information that causes the public information. In other words -- use fundamental analysis. Since there are other people doing this analysis on big firms -- the payoff isn't going to be high, since they will probably ge tthe informatin before you.
That means that profits are to be made in smaller firms where no analyst is covering the company. You can be the first to learn what the public information means. Unfortunately, doing this involves a skill and knowledge that most people don't possess. And it is certainly a knowledge that you aren't going to get asking here.
2006-07-05 04:38:08 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
Pfizer and costco
2006-07-05 02:50:13 · answer #3 · answered by thesweetestthings24 5 · 0⤊ 0⤋
anything that doesn't end up in the red
2006-07-05 05:41:08 · answer #4 · answered by James445 1 · 0⤊ 0⤋