How would you invest $2,500 to get $50,000 in as little time as possible?

Question

I am mainly wondering what stocks you would look at. Ticker symbols okay.

Answer 1

First, I would not do it with individual stocks - I would use options on those stocks. I don't think it is likely to increase your return that much without taking a huge gamble. To do it quickly, what you really need is a stock with a catalyst - one that has some major event that will either make it or break it. Small drug companies that have drugs which are about to be approved or rejected by the FDA are good bets for this kind of catalyst. Once you find the company, you probably want to buy out of the money call options.

Bird flu stocks might also be a good candidate. For example, NVAX is trading around $4 per share. If there is a bird flu outbreak, that stock will probably take off. Right now, your $2500 would buy about twenty-six Apr 07 $5 call options. If the stock was at $10 between now and Apr 07, you would make at least $13K. If the stock goes a lot above that, your return is magnified even more. If the stock goes up a lot in the very short term due to a bird flu outbreak, you could potentially cash out with a big gain in a short term. Of course, you might catch bird flu and die.

In my opinion, such a strategy should not be undertaken unless one realizes there is a significant possibility of losing all of the initial investment. [Full disclosure: I'm long NVAX common @ $3.60]

Answer 2

Expected return is directly related to risk. To get this kind of increase, you would have to invest in stocks that have an enormous amount of risk -- and would be more likely to lose everything than to get what you need.

To be perfectly honest, you would be more likely to get that kind of a gain by flying to Vegas and putting half the money on 26 Black and the other half on 29 Black on the roullette wheel.

To be even more honest, you shouldn't even be thinking about investing in the stock market until you learn enough about it to understand what a monumentally naive question this is.

Answer 3

Pick a small company out of "Business Week" and follow that company until they go public meaning their stock is traded publically. Then invest in that company.

YouTube.com is getting really popular now. As soon as they go public, go for them.

A lot of people invested in Yahoo when it was not very popular and now those people are millionaires.

If you only knew that Google would have been so popular, you could have invest $2500 in them when they were first publically traded. Now it wouldn't be worth it. They may get bigger, but I doubt it. If they can create another really cool application for everyone to use, they can get bigger, but they must reinvent themselves to make that stock rise to a new level.

Answer 4

Do it on margin. A margin is basically a short term loan that allows you to get larger amounts of money on small movement. If you use a stop, you can help prevent a large loss (because you still have to pay back the money with interest).

Answer 5

There is no one stock that will get you there - you need to watch for trends and trade quickly with as little emotion as possible. I know I took me years to get where I am and with only $2500 its going to take you a while.

Answer 6

There is no sure way to turn $2500 into $50000. Your best bet would be to purchase stripped treasury bonds. Unfortunately, the longest maturity strip that is availlable is about 30 years. Assuming you could buy a strip at 5% yield, it would take you 48.612 years to turn $2500 into $50000.

Answer 7

may be at third world government or company stock, but the risk is very very high.

Answer 8

Ahh, if it only was that easy......