what are good stocks to invest in for a 16 year old?

Question

what are some good blue chip stocks to invest in?
or any high risk stocks, with a good outlook to invest in

these investments are for the long run

with a return of no less than 8% a year

Answer 1

There are many good mutual funds that over the years have averaged 10% annual return. And some even more. That is one option you should seriously consider. You can research them on Yahoo finance, then go to their web site and research further.

There are plenty of high risk stocks and some even have a good outlook. The problem is that one is more likely to pick a high risk stock that goes to hell. There is about a 10 to 1 ratio in that respect.

Your other responders gave you a long list of good stocks. Here is a different tack to think about taking. From your own personal experience, what products and services do you particularly like? Think about investing in those companies that supply them. You will be using your expertise and most likely have better results than taking our poor advice.

Answer 2

Start investing. You'll need your parents to open the account and they may incur some additional tax obligations if you do pretty well. As a 16 year old, if you blow your savings on bad investments, you have a long time to start over and recover. On the other hand, if you get real good at trading, then you will be way ahead in life. I would recommend you really study options trading. You don't need a lot of money because you are only paying premiums for the most part instead of buying the underlying stock in many cases. The rookie mistake in options trading is buying deep out of the money options because they are cheap. However, if you stick with in-the-money options, you pay a bit more but you have a greater chance of the option expiring with some value. Learn about the concept of delta in options trading. Deltas are calculations of the probability of the stock expiring with value. Also, learn an options trading concept called spreads. Basically, you buy an option to buy a stock at a price you believe the stock will be higher than while simultaneously selling the option for the same thing at a higher price and collecting the premium. If you get it right, you make money with limited risk. So, in summary, learn options, learn options deltas, learn spreads. Once you got that stuff down and are successful at it, you will naturally gravitate toward learning other strategies. Options also give you some indication of where the market sentiment is with a particular stock.

Answer 3

If your looking at the long run, invest in the index like QQQ. I would stick with no load mutual funds until you have some time to really think out where you want to put your money after you get your career going.

You can use www.sharebuilder.com to buy stock at $4 a purchase which is about the lowest your going to find anywhere around.

Good luck, and remember if it sounds to good to be true, it most likely is. Don't buy stock on someone else recommendation without at least doing some research on the company.

Answer 4

Unless you have a LOT of money to spread around, I would advise you to look into mutual funds rather than individual stocks. Limit it to 3 funds.

Permit me to suggest Vanguard S&P 500 index fund, a domestic growth and income fund (that emphasizes growth over income) like American's Investment Company of America, and an international fund, either diversified like Dodge & Cox International, or locale-specific like Fidelity Latin America.

I own most of these funds, and I am pleased with the results.

Answer 5

Anything tied to the Euro; since the American lifestyle and the dollar are going straight to the toilet.

Galxo Smith Kline (GSK)
Infineon (IFX)
Ericsson (ERIC)
Buhrmann (BUH)
ICICI Bank (IBN)


are a few.

If you are dead set on American stocks, I guess oil is the way to go for at least a few more years since $100 per barrel oil is here by summer most say.

P.S. So NOT buy mutual funds. The boy is 16, so you should be as aggressive as possible. Mutual funds are a horrible investment. They are terribly taxed and you have very very very little upside to compensate for the amount you have to give to Uncle Sam. I have been around stocks and investing my entire life (my father a broker for over 40 years, and myself for a few as well, before investing full time on my own.)

Answer 6

I had an economic professor who would play stocks by opening the Wall Street Journal and playing darts...it is all about diversification and keeping your money in for the long term...if you invest with a large company watch out for fees, referred to as loads...

Answer 7

I'd suggest taking a look at what's getting the nod @ http://caps.fool.com and do some research into them yourself @ http://quote.fool.com (see the investing section on the main http://www.fool.com website for how to do this).

Though some that may be of interest:
Anheuser-Busch (BUD)
Toyota Motor Corp (TM)
Honda Motor Co (HMC)
BOLT TECHNOLOGY (BTJ)
Cadbury-Schweppes (CSG) - could be worth a punt, as there's the possibilty of the company splitting between the part that makes Cadbury's Chocolate, and the part that makes Dr Pepper / 7 UP / Canada Dry ginger ale.

Answer 8

A very good stock is symbol NXG Northgate minerals

http://finance.google.com/finance?q=nxg

It is about five years old on the market and shows very strong potential. It is a gold mining company out of CANADA.
Gold will be rising significantly within the next five years, Northgate has a strong management team and several key mines.

Answer 9

Go for indexes on USA stock exchanges: SPY, COMPX, INDU
I know a share is a lot of money but you can buy portions of a share.

I had GE forever and it made not money. I have owned tons of stocks and your big problem is when to sell them so make yourself a goal of say, 30%, and sell when the stock gets to that level.

Answer 10

go on the nyse website and check some companies from brasil,,, their are some big banks....