I think mutual funds are better for most everybody.

However, if you want to buy individual stocks, you might consider what you, your wife, family and friends like and use all the time in daily life, things with a long time of use and existence and desired products, not new or flashy. Things like, maybe for example, Coca Cola, Proctor and Gamble products, major food manufacturers, well you get the idea. Don't buy what you don't understand. Simplicity and well recognized and a long history of use.

Having said that, really look at good mutual funds.

Good luck to you.

“Risk is not knowing what you are doing.” —. Warren Buffett

If you don’t know anything, or much, about evaluating businesses, deciding which are good buys, which are not, you probably ought to stick to mutual funds, ETFs, etc.

If you insist on picking your own, maybe you should invest $15 or so in “The Little Book of Value Investing” by Christopher Browne. Once you understand the principles he explains, then, if you can still stand it, get “The Intelligent Investor” by Benjamin Graham. Warren Buffett says this book changed his life, says it is the best book ever written on investing.

Keep in mind the observation of Lord Keynes, that “[Investing is] intolerably boring and over-exacting to anyone who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll.”

Try not to confuse luck with skill.

If you have to ask about stocks to buy, you need to stay out of the market. I am being serious here.

quote:

Originally posted by arlen:
If you have to ask about stocks to buy, you need to stay out of the market. I am being serious here.

Ok, I’ll stay out then. Thank you for your advice.

Thank you also for being serious there.

That is horrible advice. How about this? If you don't know which stocks to buy, look into mutual funds. Plenty of options there and you don't have to know/guess what is the best individual company.

Keeping your money on the sidelines is a great way to not make or lose any money.

Mutual funds, even simple index funds, are a great option for those not willing or able to pick individual stocks which is an inherently subpar idea anyway. Back in the day when I did pick individual stocks I subscribed to the "build your own mutual fund" methodology. Putting all your eggs in one basket is an idea fraught with peril, building a diverse portfolio has a better upside.

Back then I bought DRIP's using The Money Paper as my template.

quote:

Originally posted by JALLEN:
“Risk is not knowing what you are doing.” —. Warren Buffett

If you don’t know anything, or much, about evaluating businesses, deciding which are good buys, which are not, you probably ought to stick to mutual funds, ETFs, etc.

If you insist on picking your own, maybe you should invest $15 or so in “The Little Book of Value Investing” by Christopher Browne. Once you understand the principles he explains, then, if you can still stand it, get “The Intelligent Investor” by Benjamin Graham. Warren Buffett says this book changed his life, says it is the best book ever written on investing.

Keep in mind the observation of Lord Keynes, that “[Investing is] intolerably boring and over-exacting to anyone who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll.”

Try not to confuse luck with skill.

Thanks JALLEN. And thanks to those who actually answered the question in a way other than “if you have to ask, then you shouldn’t buy anything”.

Got the mutual funds going for me and the wife. Just had a little extra money that I want to play around with. I figured this “correction” might be a nice time to snap up a bargain.

I was looking more for maybe suggestions of industries to invest in, or even something to jump in on and hold on to. I’ll keep researching.

Thanks.

“As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.” —Lord Keynes

Buying individual stocks is not the best for beginners. The advice to buy exchange traded funds (ETFs) is good.

But it's not much fun! Plus, if you buy a fund that owns 95% of the stocks in the stock market, you are going to buy 95% of the stocks that will be going down. There are a lot of stocks in the S&P 500 that suck. There are also a WHOLE LOT of stocks in the S&P 500 that have already gone up a WHOLE LOT and could very easily go DOWN a WHOLE LOT. Like tomorrow! I don't like to buy stocks that have already gone up a whole lot. Stuff like the FANGs, which include Facebook, Amazon, Netflix and Google. These stocks are much like Bitcoin, like playing roulette. The FANG stocks have accounted for the majority of the gains in the S&P 500 over the past few years. Index funds are more risky than most people realize.

My accounts are with Schwab. So I buy Schwab ETFs that consist of "value" stocks (SCHV) or high dividend paying stocks (SCHD). I consider these to have lower risk than the market at a whole. On Schwab's web pages, they list the stocks that are held by the ETF. That way you can make sure you are not getting FANG stocks.

As J Allen recommends, I rely on the principles of Benjamin Graham in The Intelligent Investor. You should buy stocks based on expected future cash flows, which should approximate earnings. This would eliminate Amazon and Netflix, neither of which has any material earnings.

One way the beginning investor can get started is by buying stock in companies where you are familiar with their products. You mentioned an earlier investment in Ford. I love Ford products, and have a driveway full of them. But at this time, the stock market Hates Ford (F). So yesterday I bought Toyota (TM), because it has a popular product, excellent management, a high profit margin, low PE ratio and a high dividend. I also think that the economy will boom over the next two years, and a lot of people will be buying Toyotas (made in Alabama) with the raise they got.

Whatever you do be sure to diversify your investments.

The stock market is better than playing the lottery, or eating at that fancy overpriced restaurant you love.

There is another strategy you can follow as well.

Wait for me to buy an individual stock (I'll email you) and then sit tight for 3 months. You'll then be able to buy that same stock at its 52-week low.

quote:

Originally posted by RAMIUS:

quote:

Originally posted by JALLEN:
“Risk is not knowing what you are doing.” —. Warren Buffett

If you don’t know anything, or much, about evaluating businesses, deciding which are good buys, which are not, you probably ought to stick to mutual funds, ETFs, etc.

If you insist on picking your own, maybe you should invest $15 or so in “The Little Book of Value Investing” by Christopher Browne. Once you understand the principles he explains, then, if you can still stand it, get “The Intelligent Investor” by Benjamin Graham. Warren Buffett says this book changed his life, says it is the best book ever written on investing.

Keep in mind the observation of Lord Keynes, that “[Investing is] intolerably boring and over-exacting to anyone who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll.”

Try not to confuse luck with skill.

Thanks JALLEN. And thanks to those who actually answered the question in a way other than “if you have to ask, then you shouldn’t buy anything”.

Got the mutual funds going for me and the wife. Just had a little extra money that I want to play around with. I figured this “correction” might be a nice time to snap up a bargain.

I was looking more for maybe suggestions of industries to invest in, or even something to jump in on and hold on to. I’ll keep researching.

Thanks.

OK, that kind of changes things!

I just want to mention limit orders, a wonderful trading tool. Especially in the wild ride market we are currently enjoying.

Find a stock that you don't mind owning forever, like Toyota (TM). If it is trading at $136, put in a limit order to buy at $130. If the stock drops to $130 your order will go off. Or if you already own Toyota, put in a limit order to sell at $146. Rinse and repeat.

You can also place a stop loss order. In this type of trade. If TM is trading at $136, you can put in a stop loss at $130, so that if the price drops to $130, your order converts to a market order and you will sell. If the stock continues lower, your loss won't increase. But by using a stop loss order, you have locked in your loss. Don't do this in this week's volatile market.

The choice of stocks is primarily a function of your risk comfort level. I am more concerned with the return of my money, than the return on my money, said Will Rogers. If you want to roll the dice, buy the FANG stocks. If you want a long term investment, buy a Graham stock.

I would like to mention that I mostly avoid the oil patch stocks. I will never again buy gold and silver miner stocks.

The auto manufacturers and telecommunication segments both have P/E ratios below the S&P 500 average. I own proportionately more stock in those industries, which have performed below the S&P 500 for several years.

I have always had good luck with utility stocks. Currently the only one I still have is Con Ed (ED). We got it at $27 a share, yesterday it was $76, but we have owned it for about 20 years.
We had Bell Telephone that branched into about 4 other companies. Sold them over the years, but they were good stocks.

Buying and sell/flipping has tax implications. Just preceded with caution if you go this route.

I tend to buy and hold. The only stock I’ve sold in the past 5 years was GE and I’m sure glad I did.

I hear all the cool kids are buying into this Bitcoin thing. It sounds promising.

Is there a casino or horse track near you? If you have a little extra money to play around with, those places can be fun. If you want to invest, read The Intelligent Investor, learnhow to read financial statements, and start looking.

I’m not trying to be an ass any more than the other folks that gave you good advice. If you’re asking for stock tips, you might as well be asking what horse I like in the 7th.

quote:

Originally posted by doublesharp:
I'd never buy mutual funds, individual stocks for me.

If I were to buy a fund it would be an exchange traded fund or American exchange spider that tracked the index or particular basket I wanted.

Been in the market since 1964 and never owned a fund. My portfolio consists of about 25 stocks and I can tell you why I own each in about 30 seconds. Research Dogs of the Dow and go to work.

So you're buying GE??

Yes I bought GE at 16 shortly after they halved the dividend. Still pays 3% after the haircut.

Go to the library and read Value Line and other investment publications they may have.
Take notes on the sector recommendations and look for the best stock in the sector.

Subscribe to Investors Business Daily and look for their highly rated stocks for consideration.

Only invest in sectors you understand. Read Stan Weinstein's Professional Tape Reader

https://www.amazon.com/Stan-We...words=stan+weinstein

Join StockCharts.com and learn technical analysis and listen to the daily updates at 12pm:

http://stockcharts.com/webinars/tv.html

http://stockcharts.com/webinars/scc-outlook.html

Join Steve Bigalow on his Thursday night webinar's and learn TA. You can also download previous sessions and even join his trading group:

http://www.candlestickforum.com/

http://www.candlestickforum.co...305_/candlestick.asp