If you had $500,000 to invest in only ONE STOCK what would it be?

Question

I'm in a fake stock market game at school and I have $500,000 what should I invest in, whats steadly going up? no mutual funds, just ONE STOCK...what do ya think..

Answer 1

either sony or microsoft stock

Answer 2

This is a stock market game, which usually reward you for the exact behavior investors are NOT supposed to do.

If there is no penalty for being wrong (like most stock market games) and there is a prize for being right, you do the following things:

1. Do not diversify (this is wrong in real life).
2. Buy the riskiest, craziest stock in the market that looks horrible. Preferrably, you want something with a binary outcome where they are worth a lot or nothing. Some examples would be BBC or RDYN. Sometimes this works in real life. It's commonly called "vulture investing".

3. Buy the most volatile stock you can get. It should have a very high beta and/or standard deviation. You need the most risk (this is wrong in real life).

Answer 3

I fully agree with a previous post that says it's foolish to invest so much in one stock (assuming you'ree not working with $10 million). And your school is surely teaching you wrong if it is suggesting this or if it's suggesting that short term gains that come with incredible risk are something you should be aiming for. You need to diversify in order to be successful as opposed to just being lucky. So if you MUST only buy one stock, I would choose an ETF that either mimics the SP500 or the US Total Market.

Answer 4

Well, I know this isn't the answer you're looking for, but your school is not teaching you very well with this "game" if they are suggesting you invest your fictional $500K in one stock only. In real life, no one who is smart and investment-savvy would ever put that much money into one stock. People would put at most around 5% of their total stock investment funds into one stock. So, unless you have $10 million to invest, putting $500K in one stock is just plain dumb.

Your school should be telling you that!

OK, getting off my soapbox now.

Answer 5

In real life the best investment will be diversified one.
But since this one is fake and the most important is % gain
if i am in your shoes as of Nov 22-2006-i would go with
NYX-New York Stock Excange.
My second choice is GROW.
Third is IBN,not IBM.
Good luck.

Answer 6

Any public held Las Vegas casino stock xn or cx or cn.
The point would be that you also want the cash to be
available when the midterm exam comes along. If you are
lucky these stocks go up by 7 times even more.

Answer 7

No stock. I'd buy a couple of apartments or a 2 family house and rent. With the rent money I'd invest in stock.

Answer 8

I have to pick two:
-Altria (MO). Over the past thirty-odd, years, this stock has had an average annual return of around 17%(ish). One of the best run firms in the world
-Berkshire Hathaway. It's an opportunity to ride on the coattails of Warren Buffett, the greatest investor in history. Since he took control of the firm in the mid-60s, its gone from around $20/share to $107,000/share

Answer 9

I would suggest IBM, they are making a lot of headway with the Nano Technology industry, which is growing by leaps and bounds. They had added a numerous amount of projects and plan to employee thousands of people in this industry, boosting the economy and bringing in millions of dollars in revenue.

Answer 10

Look at the Spiders and Webs...

These are market sector indexes. You need to do your homework when picking one, since they do tend to go up and down, but look at the current trends and pick one of them that is currently going up.

Below is the current list of all that I know of and their current actions for the day as of roughly noon.


AMEX SPDRS

XLB34.6400+0.8100
XLE57.31+0.21
XLF36.17+0.17
*XLI35.32-0.08
XLK23.66+0.02
XLP25.91+0.02
XLU36.04000.0000
XLV33.1601-0.0599
XLY38.10-0.01

WORLD EQUITY (WEBS)

EWA22.6800-0.4000
EWO33.8600-0.3400
EWK24.52-0.30
EWC25.1400+0.1500
EWQ33.0800-0.0900
EWG26.00+0.03
EWH15.30-0.09
EWI32.73+0.11
EWJ13.12-0.29
EWM8.53-0.01
EWW48.1684+0.5684
EWN25.56-0.09
EWS10.5700-0.1100
EWP52.77+0.03
EWD30.05+0.02
EWL24.2483-0.0017
EWU23.1100-0.0300

GENERAL SPDRS

^BXV34.61+0.67
^EXV57.32+0.22
^FXV36.18+0.09
^FXVDVN/AN/A
^FXVNV36.08-0.08
^FXVSO68416.25+2500.00
^GWI116.96+0.27
^KXV23.67+0.05
^KXVNV23.62+0.02
^KXVSO87653.60-1250.00
^MXV147.55+0.42
^MXVDVN/AN/A
^MXVEU5769.02-12.08
^MXVNV147.13-0.19
^MXVSO59353.070.00
^MXVTC5843.47+189.04
^NXV33.15-0.09
^PXV25.90+0.03
^SXV140.63+0.23
^SXVDVN/AN/A
^SXVEU21320.50-17.70
^SXVNV140.40+0.14
^SXVSO488522.44+8100.00
^SXVTC21456.00+340.20
^TXV35.33-0.07
^UXV35.99-0.07
^UXVDVN/AN/A
^UXVNV36.05+0.04
^UXVSO84588.60-250.00
^YXV38.12+0.06

Answer 11

Yahoo. Yahoo is undervalued & has a killer balance sheet. It is a great franchise with one of the most recognizable names in the world. Yahoo is unloved right now in the stock world, which is exactly why I like it here.