What is better to invest in, a mutual fund of company stock?

Question

what is the best investment for the long haul of making a person more money a mutual fund or company stock? Does anyone now of hot stock pic in either catagory?

Answer 1

Mutual funds offer diversification. However, if you want to buy stock for the long haul, buy the stock of a major bank and hold it. Like Bank of America or Citigroup.

Answer 2

A mutual fund buys lots of stocks, so buying a mutual fund reduces your risk.

A single company is riskier and harder to know when to buy or when to sell (which is why many buy mutual funds).

I have a hot stock tip for you - don't buy any mutual funds until they're done their annual distributions. If you do, then you're going to buy a tax liability that you didn't earn (mutual funds need to shed their capital gains every year - used to be non-taxable but Reagan changed that in 86). If you buy now and there is a 20% distribution, you'll pay tax on that 20% gain.

GM got nailed 5% today - some would say that's a buy opportunity, others say run like Kekorian did.

Google shot to over $500 today - some say buy it's on a run, others say don't buy because it's too high.

My other hot stock tip - don't buy what you don't know. Personally, I like MSTR (Microstrategy), but I know the founder and he thought of bluetooth technology 7 years ago - he is a visionary).

Answer 3

It's always a great idea to invest in Mutual Funds. The market is always looking ahead & if you try to time it..... you'll lose a large amount of the "upside". Besides, this is a long term commitment (10 years or more). You'll never know the right "time to invest"..... but you'll be there when you should. The two most important things to follow for sucess in Mutual Funds are; An "asset allocation" which you follow strictly. Low internal fees & no load funds only. Read some books. Start with "Mutual Funds For Dummies". Index funds are good, but not always the "answer". The S&P 500 index funds have performed poorly for the past 10 years. Keep to an "asset allocation" model that works for you & combine (eventually) managed and unmanaged funds).

Answer 4

The right stocks will definitely outperform mutual funds in the long term.

The problem is the definition of the "right" stock.

Be wary of people who tell you about the next hot stock.

Mutual funds are a collection of many different stocks so that the diverisification of risk - spreading your risk so that you don't place all your eggs in one basket in case they break - is already provided for you by the person in charge of the mutual fund (the fund manager).

So when you look at mutual funds it is important to know who is in charge of the mutual fund.

If you do decide to go with stocks, then I would suggest that you stick with companies that you know. Have you heard of microsoft, apple, bayer, johnson and johnson, pepsi - to name a few. Companies that can generate a large number of sales and be profitable are about as "safe" of an investment as you can make.

Look at the companies that are earning profits above analysts expectations, that have a strong position in the global markets, and that have strong brand names.

Answer 5

A better way of thinking of it is that company stocks are riskier but give
higher rewards than mutual funds.

Over the long term (i.e. 20 years), the stock market will do better than
mutual funds. If you have a nicely diversified collection of stocks, in the
long run, you'll do better with stocks.

If you're going to reap your rewards sooner (i.e. 5 years), you should
probably pick mutual funds.

Answer 6

I would think company stock. I had bought some shares from Ford Motor Company for only $7.00 and made over $100.00 in one day. You just need to figure out with stock would be the best to invest in. You will also need to open a stock market account at any bank. Hope this helps

Good Luck

Answer 7

Go check out the articles at http://www.hammocksurvivalguide.com/
Specifically, the categories of 'Stocks Mutual Funds' and 'Investing'.

Answer 8

You're probably better off in mutual funds if you are asking people on here for hot stock picks.

Here's a page for finding a good good mutual fund to invest in:
http://www.best-stock-trading-systems.com/mutual_fund_ratings.html

Here are some pages regarding stock picks:
http://www.best-stock-trading-systems.com/us_stock_picks.html
http://www.best-stock-trading-systems.com/best_penny_stocks.html

Answer 9

rather than a mutual fund....you might want to buy stock in the parent company....
for instance....
Legg Mason's stock [LM] has outperformed all of its funds....
much the same with Franklin Resources [BEN]
and TRPrice [TROW]
and AVZ holdings---AIM funds, Invesco funds, and "powershares" ETFs

for a spec play, you might want to research
JNC, JNS, EV,AB, MMC ....
some for M&A possibilities, some for performance

good luck

Answer 10

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http://investing.sitesled.com/

Good Luck and Best Wishes!