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How many stocks of each company would you buy?

It's just an online simulation game by the way. But I can never find the really good stocks.

2007-09-26 15:52:18 · 4 answers · asked by Anonymous in Business & Finance Investing

4 answers

Rule of thumb,and what the experts say and i agree with. is you put only 5% or less in one stock,tha mean you buy about 20 to 24 stocks to reduce the risk of one company going bust or bankrupt which hapen all the time..but you don't have to do that you can buy a low expence mutual fund , read this link

http://www.marketwatch.com/news/story/here-7-year-winners-put-break-even/story.aspx?guid=%7BE4E8D8E0%2D7994%2D4941%2DAAFF%2D5B67A7A93965%7D

2007-09-26 16:01:56 · answer #1 · answered by frankbarakat 2 · 0 0

I certainly agree with one of the responders that at least a portion of ones money might profitably be invested in a closed end fund such as IIF. I however also think that a portion should be invested in a Chinese fund such as CHN. However, I would put no more than about 10 K in each. As one responder mentioned risk is reduced by having no more than 5% in any one security, but I think one can safely go with up to 10% especially if the investments are in closed end funds or index funds. An oil stock would be worth investing in also or maybe two. COP and DVN are possibilities. There are also others. I would also have about 10% in t-bills as a safety value if the market should drop about 15%. Another 10% in a mutual fund investing in European stocks. 10% in small cap mutual fund such as PENNX.

The other investments you will have to pick yourself.

2007-09-26 21:35:54 · answer #2 · answered by Anonymous · 2 1

I would probably just choose one company at first.

If you go with the shares the fluctuate the most, those cost more and you get fewer shares.

I would go with Microsoft or some other. I would NEVER go with a brand new company. You have no way of knowing what is going to happen.

2007-09-26 15:55:20 · answer #3 · answered by perfectlybaked 7 · 0 1

$25,000 XLI
$25,000 EWZ
$25,000 IIF
$25,000 XLU

That's ETFs in U.S. industry, U.S. utilities, Brazil and India.

My thoughts on China is the country is far too corrupt to do business with. The whole nation is one big Enron and it's not a secrret that it is. XLU and XLI are long haul players so they may reflect poorly in any simulation.

2007-09-26 18:47:42 · answer #4 · answered by gregory_dittman 7 · 0 0

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