What is the best way to build a stock portfolio?

Question

If you are limited to a few thousand dollars, are you better off buying a large amount of shares in a few companies or a small amount of shares in various groups?

There are about 12 companies that I love, but I only have 3k that I want to start with.

Answer 1

I'd cull out the best 5 or 6 and divide it evenly among them.

Answer 2

depending on what broker you use commissions could eat at you.

i use scottrade.com , commission of 7 per trade. I know better ones exist but you need 5k to get in them.

As far as investing , if you only have 3k you are most likely better off putting money in at Max of 4 companies. That would be a mere 750 per company.

i would probably go w/ 3 companies to start and then diversify into others.

A index fund is also another answer that would provide maximum diverfisication at a very low expense. go look up an S and P 500 index fund.

Answer 3

I've already lost money in stock market after I ALREADY KNEW collectables have out performed stocks. RARE Currency is the best investment/hobby for the future because there is NOT enough notes that exist to meet collector demand. EVERYONE who reads this should own at least one 1928 U. S. Gold Certificate, & a National Bank note of their hometown. (search EBAY). Example: Highest "Bill' you can own is $10,000 bill last available for face at banks in 1969. Available for years at $13,500 to $19,000 NOW current value is $50,000 to $70,000 , less than 350 are outstanding. Screw the stock market!!!!!!!!

Answer 4

go to www.optionsxpress.com and read all you can...they have a great many tools for learning...even set up an account and use play money to learn how to trade in the markets. After you have the skills then set up a real account.
Avoid the options at first and trade stocks only...set limits and follow the stocks daily. Its fun.
Happy trading !