2006-10-05 03:23:52 · 10 answers · asked by amanda pr 1 in Business & Finance ➔ Investing
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.
The fact is that if anyone knew of a stock that was undervalued, they would buy it & that would bid up the price, making it less likely to be undervalued for later investors.
Academic studies show that new information gets imbedded in prices almost immediately. This means that if someone tells you here that there is good news for a company, then that good news is already priced in.
The only way to beat the market on a regular basis 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 trading). 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 get the information before you.
All of this means that profits can 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 learn asking here.
No load mutual funds are your best bet.
2006-10-05 03:36:14 · answer #1 · answered by Anonymous · 0⤊ 2⤋
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.
The fact is that if anyone knew of a stock that was undervalued, they would buy it & that would bid up the price, making it less likely to be undervalued for later investors.
Academic studies show that new information gets imbedded in prices almost immediately. This means that if someone tells you here that there is good news for a company, then that good news is already priced in.
The only way to beat the market on a regular basis 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 trading). 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 get the information before you.
All of this means that profits can 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 learn asking here.
No load mutual funds are your best bet.
2006-10-05 10:32:17 · answer #2 · answered by Ranto 7 · 0⤊ 2⤋
Maybe you should consider that now is not a good time to begin investing at all.
With the Dow at all-time highs, market risk has grown substantially. There will always be opportunity here. Try to put the odds in your favor.
Buy low, sell high; obviously not the case right now.
2006-10-05 10:52:44 · answer #3 · answered by dredude52 6 · 0⤊ 0⤋
Microsoft, company has a new application coming out, Vista, the stock has been flat for 5 years yet has grown earnings and revenues substantially.
It's a conservative play so you should be protected to a degree on the downside.
2006-10-05 10:27:20 · answer #4 · answered by Lucious Z 1 · 0⤊ 2⤋
it is good to buy at a high in the market. when a stock is at a high for the year it is trying to get to another high. that is the time to buy. don't look when it is at its low. it is there for a reason
2006-10-05 16:35:51 · answer #5 · answered by sligoman 4 · 0⤊ 0⤋
RVBD, they just had their IPO, guys are ex Cisco, they left as Cisco wasn't interested in the sector of the market that they wanted to move into so they started Riverbed. Now Cisco is having to catch up with them. Long term prospects are good for Riverbed.
2006-10-05 10:30:39 · answer #6 · answered by Zemla 1 · 0⤊ 1⤋
Wish I knew for sure!!!
Get some Sears Holding -- SHLD.
2006-10-05 10:31:21 · answer #7 · answered by Jimmy Crack Corn 2 · 0⤊ 2⤋
Microsoft...
2006-10-05 10:31:01 · answer #8 · answered by ? 2 · 0⤊ 2⤋
TM, they have been on a roll
2006-10-05 10:25:05 · answer #9 · answered by Anonymous · 0⤊ 1⤋
any thing but walmart
2006-10-05 10:31:53 · answer #10 · answered by brandy p 1 · 0⤊ 1⤋