If you had $20,000 to invest in, which company would you invest in?

Question

Would you invest it all in one company, or spread it in various companies?

Answer 1

I would not invest it in one company but diversify. But this is because my goals are to invest rather mid and long term with medium to low risk and still good yields.

I would pick a couple good Blue chip companies like Procter and Gamble and GE - if stocks.

Actually for myself I do not even want to bother with stocks anymore. With my investment goals and strategy I just pick an S&P 500 Index fund, something darn cheap, like Vanguard or Etrade's.

The total opposite would be for experienced traders who want the shortterm gain with high risk. This could be day trading or just over the course of a few days. And then - it's very different. You pick stocks which are rather volatile than stable. Mostly in the technology or Biotech sector.
Unless you know really well what you ared doing you should stay away from that. It is a bit like gabmling.

Answer 2

WOW, i now know why so many people are broke listen to these answers. The bigger the risk the bigger the return, TMTA, go look it up on the stock market is suing intel over a patend. That stock is going to be at 25 bucks soon. Take the money invest it ALL in that company and repost when you turn 20 grand into half a million. Good Luck.

Answer 3

I would pick 4 to 10 mutual funds, that way I would own hundreds of companies, reducing my risk should any one of them fail. Go to the library and read some books on investing.

If you have not finished college then use the money on education. An education is the best investment you can make as it is an investment in yourself.

Answer 4

I would spread it around.
A great site to look at if you are looking for some investing ideas is http://www.top10traders.com The site lists out which investors are doing the best and what stocks they have bought. Just click on the portfolio of the best investors and you can see the stocks they like.This is a totally free site. You can create your own portfolio of stocks with $100,000 in 'play' money, and then watch how your stocks compare against other traders. When you feel comfortable with a stock that you have in your 'play' portfolio at http:www.top10traders.com then you can go out and buy the real thing. Good Luck

Answer 5

You wanted a money management strategy. Here's what I'd do.

I'm going to presume that this is not your main retirement monies. Rather it's some monies you want to carve out for growth.

That said, for simplicity, I'd spread it, 5 ways.

I'd put 80% into the strongest sectors (such as brokers/dealers, retail, insurance) and have 20% available in cash in case I want to get into something else.

I'd limit losses to 5% or less (ideally 2%) of the $20,000 max (it happens) so that you'll always keep most of the principle to invest in another day.

Be sure to use stops and move them up as your position becomes profitable. Always have a plan before you invest.

Good luck!

Answer 6

If all you are going to invest is $20,000 you do not want to put it into just one stock. There would be too much risk of loosing a substantial amount. If you don't believe that ask those who had all their money in Enron.

If you want to invest in individual stocks, invest in at least 5.

However, there are such things as index funds and closed end funds that trade like stocks. If you want to buy just one investment, buy one of them. For a conservative investment, consider GAM. For an agressive investment consider IIF.

Answer 7

Invest in you own company. It's a much better return and you are in control.
Even if it's the loaning business. It's still you call. Of course you need to be a good judge of character.

Answer 8

Spread it around, but not so much that the commissions will eat up any potential profits.

I would pick 4 solid companies. I would make two of them good solid "blue chip" companies or index funds with solid fairly predictable returns and two of them in "hot" growth companies with good shorter term prospects for higher growth.

Answer 9

I'd spread it around on about 4-6 companies. (I invest in 7 now).

The ones that are treating me nice right now and the ones I'd invest more today are...

Starbucks
AUO
HP
AT&T
JNJ (blue chip stock)

I'd also suggest you read some educational blogs and you might want to watch Jim Cramer's "Mad Money" on CNBC.

Answer 10

Spread it around.

China is currently the number 1 user of concrete in the world, and the number 3 user of steel. Do a little research and find out where they are buying their raw materials.