I wanted to invest $1,000 in a company. Is that a safe amount to start with?

Answer 1

you have to start somewhere.

You received several answers, that it was a safe amount if you can afford to loose it. A very astute answer. You most likely will not loose all of it, but nevertheless it is a distinct possibility that you should consider. More likely will be the outcome of loosing about half. Decide before hand the amount you are willing to loose and then when you loose that amount, bail out.

I distinctly remember all of the folks that thought Intel was a good purchase at $100 a share. Some are still holding it.

If you can not afford to loose the $1000, you may wish to consider instead a mutual fund. There is somewhat less risk involved because of the diversity of investments, assuming you pick a fund that invests in diverse invements. Many if not most do not.

Answer 2

ALOT of good answers here! and of course if the $1000 will not lead you to living in the streets, then by all means jump in after doing your homework on various companies. $1000 is the amount I started with and WOW I still have that $1000 plus much MUCH more!!!

Also check out companies that let you buy their stocks directly ; "dpp" or "drips" = direct purchase plans / direct reinvestment programs. you can search the internet for direct purchase plan companies. (such as ; walmart, ford, GE, nokia, and the list goes on...) I started out that way and worked my way up. I also only invest for the long term so if you are wanting to "day trade" be sure to check out an online brokerage that you can purchase / sell for as little as $4 a trade. Just be sure to do your homework, research the companies that INTEREST YOU then jump in AND limit time spent with those whose feel investing is highly risky. Fear & Negativity are what is risky... they will keep you forever backing away from opportunity !! Best Wishes !

Answer 3

That is a difficult question to answer without knowing more.

A good rule of thumb is to not invest money you cannot afford to loose. Do not bet the farm, do not gamble food or rent money, as investing is never a sure thing.

For $1,000 it must be a very small company. What assurance do you have that your money will be used wisely? What have you been told as to your probable income?

Answer 4

You need to look at how long the company has been in business, how much debt it has and how much growth it has gone through in the last 3-5 years.

I invested about that much in my Arbonne business, and it has been worth it. Are you looking at investing in your own business or more like playing the stock market?

Answer 5

If you can afford to lose $1000 is a good place to start. Find a company with a good record of performance and hopefully that pays dividends.

Answer 6

Yes, start small.

Get your feet wet.

If you make a profit, invest only half of it and save the rest.

If you are good enough, you'll start playing with house money, then you can become more aggressive so that your potential for larger profits will magnify.

Answer 7

Did Enron ring a bell?
before invest in anything, you have to learn to study the right way or you will get burn later.
before invest in any stock, check its fundamental,technical, and sentiment. check out political risk, financial risk, management risk
business risk.
The must READ Traders Almanac by FEFF HIRSCH

Answer 8

Liquidmetal Technologies
www.lqmt.com

Answer 9

If you have an equal amount in 5-7 other stocks, it may be.

Answer 10

Depends on how much you can afford to lose if it goes belly up. Just don't invest in Nigerian stock, however. Buyer beware!