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I'm going to invest some money and I need a couple of long term stocks that will give me a nice return over 6 years. I'm thinking about Procter and Gamble, Coca cola, or snickers, or apple

2007-05-31 12:42:40 · 4 answers · asked by fishburn7 2 in Business & Finance Investing

4 answers

Hey! Do your own homework. Do not rely on stock tips. Be independent. Here is how to do it.

If I were young, I would be investing in small cap growth mutual funds or stocks. Go here for excellent low cost advice (http://www.aaii.com/aaiiportfolios/comme... Don't be alarmed at the low cost - it has some of the best financial advice on the Web.

You have lots of time before retirement which means the magic of compound interest will just keep building and building. It really works and if you keep investing every year, in 10 or 15 years you will be surprised at how it mounts up. In 30 years you could be a millionaire which probably won't amount to much in 30 year owing the ravages of inflation.

And that's the primary reason to keep investing in small cap growth stocks - they will flog inflation to death.

Here's the formula...

READ RESEARCH STUDY PRACTICE HAVE FUN

Here are some suggestions that I have used over the years...

You may need a broker so go to Fidelity, Schwab, e-Trade or Scottrade who have low commission rates.

Do your own due diligence. Your own ideas are the best. Do not depend on someone else to select investments for you. Learn about investing so you don't have to ask what stocks to invest in.

Be self reliant.

Find stocks that have steadily rising net profits (earnings), low debt, and good P/Es, lots of cash, companies buying back their stock.

You need fast growing good stocks with good earnings and in good sectors. You need to learn more about the stock market before you even think about investing in it.

The best software is TC2000, for the cost of a soda per day you will be amazed at the amount of information and indicators available. I suggest taking one of their free all day seminars.

Here is a free Web site for charting stocks: (http://www.incrediblecharts.com/).... or try Bigcharts.com also very good.

With that out of the way, here's my recommendations...
EBAY
FWLT
LOW
PG
QCOM
GOOG
SGP
AUY
MSFT
NYX
JCP
CAT
LVLT
MO
BAC
GS
HPQ
BA
GLW
SHLD
CSCO
HAL

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2007-05-31 17:55:58 · answer #1 · answered by SWH 6 · 0 0

Congrats on the stock's you've already picked...you're thinking like a true investor. You've picked strong companies with good earnings growth, a large market share, and (relatively) cheap prices.

However, the time frame you're working within cannot guarantee you steady returns from your stocks.

The stock market is incredibly fickle, as you know. If we hit a bear market, and it could be just around the corner, even your giant mega-companies would suffer.

Historically, stocks have returned 12% annualized returns. This is looking at market trends from the early 1900's all the way up until now. However, there are years--even several years in a row--when the average stock dropped by 20% or more.

You can't let that happen. If you're going to need that cash 6 yrs. from now, the only safe place for your money to go is a money market fund. The returns aren't very sexy compared to the stock market (5% vs. 12%), but you can rest easy at night.

Some investors might even recommend a bond fund. Good luck.

2007-05-31 14:44:49 · answer #2 · answered by Anonymous · 0 0

Please give this some thought;
You're asking investment advise from strangers with no way to verify their qualifications or motives.

I think there may be better ways for you to learn. You need to understand basic concepts like "asset allocation". You need to read at least two books on "basic" investing. Not doing so can lead to a major financial disappointment.

2007-05-31 16:38:14 · answer #3 · answered by Common Sense 7 · 0 1

Look into Wells Fargo. (WFC)

2007-05-31 12:58:22 · answer #4 · answered by Anonymous · 0 0

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