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What stock would you buy and why?

Squidly McSmearstain

Squidly McSmearstain

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Joined
Jul 26, 2006
Location
San Ramon
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2024 Triumple Speed Triple RS, KTM RC390
I want to buy some sotck for a long position.

My initial inclination is to be simple and buy shares in an index fund with low fees.

I MIGHT be interested in being somewhat aggressive with a LITTLE bit of money.

Any suggestions on decent index funds (domestic) and/or suggestions on being a bit of a gambler (domestic or international).
 
CBEY and T have done well for me.. :dunno

I got in CBEY at the IPO. It has done well, and as the market went down it was the last to react, and as it comes up, it seems to be ahead of the game. Small iptel company.

T=AT&T...
 
an S&P500 index fund

buying individual stocks is too risky
 
blue chip, dividend paying stocks. use the DRIP system. cheap and relatively safe for a long time horizon. all investments are a gamble. there are no safe investments.

(not even a cd or bank savings account)
 
Buy six months ago. The market has had a very very good upturn and this is probably not the best time to start buying.
 
Not sure I'd buy now, but I'll tell you what I'm still holding, considering I'm mostly out of the market at this point:

UNP.

Reasons:
- Well managed. Traditional blue chip, asset based company.
- Tons of free cash flow.
- Book value nearly as large as their market cap (i.e. worth as much dead as alive.) When I bought, their book value was actually higher than their market cap.
- Energy demand is driving record coal shipments for them, which is offsetting fewer goods being shipped.
- Still the most efficient means of moving goods -- combined with decades long experience hedging fuel expenses.
- If you bought in 1980, you'd be up about 90% PER YEAR.

I'm up about, hmm, 50% in the last six months, and easily 120% over the last few years. It's not going to make you money fast, but I don't think UP is going anywhere anytime soon. Sort of investment you just hold long term and don't worry about too much.

That said, it's been run up in the last few weeks and months, so you'd be buying in at a comparatively high price (but nowhere near peaks of the last few years.)
 
Right now CEOs and such are selling stocks, after having bought several months ago.

Think they know something?
 
Nahh, those guys sell all the time.

Those sales are scheduled months in advance, reported to the SEC and published.

Think of it as them drawing their paychecks.
 
afm199 said:
Buy six months ago. The market has had a very very good upturn and this is probably not the best time to start buying.
Click to expand...

Yeah, I would wait it out. The smart money was investing several months ago when it tanked. BofA was under $4.00 at one point, trading at $18 today. Ford was $.80 at one time, trading at $7.66 at close today.

Maybe put some money into a value oriented mutual fund. Those tend to have more volatility than the average mutual fund, as they look for undervalued companies. Dodge and Cox Stock Fund and Legg Mason Value Trust are a couple that come to mind.
 
Buy penny stocks. Screw turning 5 grand into 5500. At that rate I can just be thrifty and just save that $500. Turn 5 grand into 500,000 or lose it all in a glorious alcohol induced fireball.
 
Don't just think stock. Think other investments, too. For example, copper is not getting any cheaper, and it's as vital as oil to our way of life...
 
Don't buy a single share until you are sure everything else is in order. Do you carry a balance on your CC? Are you making payments on a car or motorcycle? Go to Vegas if you want to gamble.
 
^^Good point. YOu should ideally have any non-deductible debt paid off, be maxing out your 401K and Roth IRA, along with an emergency fund to cover 6 months of expenses before throwing your money at stocks.
 
Dr. Evil said:
Don't just think stock. Think other investments, too. For example, copper is not getting any cheaper, and it's as vital as oil to our way of life...
Click to expand...

I agree with this.

I would short the dollar and buy dollar denominated commodities. The problem with futures contracts, however, is that they are relatively short term. YMMV

On the DL, I heard that certain financial services companies are *contemplating* privately selling default swaps on Treasuries to big holders of US debt (read: China). :wow
 
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Honestly, my next purchase are Google, Citibank, Proctor and Gamble and GE, and I intend to hold onto them for a while.
 
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