What is the most efficient way to purchase several shares of a stock ONCE and then leave them sit for decades?

Question

Efficient = easy, least expensive, least maintenance over the long term, least maintenance fees.

If you are recommending a brokerage, give specific company.

Answer 1

You might want to look at DRIP plans:

http://www.fool.com/school/13steps/13steps05.htm

Many years ago, I set up some DRIP accounts for my niece and nephew through NAIC. It was only $7 apiece to set up each stock account, but did require the $39 membership fee for NAIC. But you are limited to those companies that are part of their "Low Cost Plan".

There may be better ways to set up DRIP accounts today.

Answer 2

Your definition of efficient is exactly the way you need to invest. Unless you are willing and able to dedicate many hours per week to reasearch (providing the company's financials are accurate) and can accept the increased risk of 'day trading' the best way to keep the largest percentage of your gains is to buy and hold them for at least 12 months and one day. Of course if the stock is losing more than 10% of it's purchase price, you'll want to consider selling it. If you sell a stock held for less than one year, and you made money on it, your gains (profits) are taxed at the higher short term capital gains rate. If you sell it after a year you are taxed at a lower long-term rate. Essentially, the longer you hold your profits the longer you avoid paying taxes on them. A good rule of thumb is to NOT own more than 10% of the average daily amount of shares traded of a stock you own, that way if you need to liquidate quickly you can do it easily. I have been successful by investing in companies that provide steady growth over a long period and a solid history of paying a dividend (usually quarterly). I then take the dividends and reinvest them in the stock that paid them or invest them in another dividend paying stock. I also reccomend reading up on investing and subscribing to an investing newsletter. This will give you a basic education on the do's and don'ts of investing and some tips on solid stocks. If you do your homework you can find some solid investment opportunities that have a return rate that are at least double what the banks will pay you on a savings or mutual fund account. Some great ones to check out are MSB, FDG, GNI and RGR.

The bottom line is do your homework, minimize your costs and don't make any hasty moves. Good luck!

Answer 3

Search "direct stock purchase plans" here on the web for a list of companies that let you buy directly from them with out a broker.

You can buy and let them set for many MANY years. Companies like : Walmart, Ford, Xcel, Yahoo, Texas Utilities, Montana Dakota Utilities, etc.... there are hundreds of these companies to choose from. Buy several and let them ride!!

Answer 4

leaving them sit for decades on just a single stock is NOT a good idea. You would be better off in a mutual fund (that pays a nice divedend) or even better an ETF. You will have lower risk voltailty holding them in either a fund or an etf.

Answer 5

Use a brokerage account that requires a low trading fee and a low acount maintance fee.

Answer 6

Try Scottrade.
$7.00 limit trades.

No Fees.