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first time investing

jared k

TRIBE Member
i want to put a few grand to work, but i don't even know where to start. mutual funds? stocks? bonds?

anyone know of good resources for first-timers?
 
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jared k

TRIBE Member
interestingly enough, i write advertising for florida real estate developers.

you need about a half a mil to get in on a condo that won't be built for 2 or 3 years. my few grand won't even get me in the door.

any other ideas? i'm allergic to panties.
 

judge wopner

TRIBE Member
jared k said:
i want to put a few grand to work, but i don't even know where to start. mutual funds? stocks? bonds?

anyone know of good resources for first-timers?


i was just in your situation about 2 years ago,

if you like reading and learning about stuff purchase anything by warren buffett for good safe long term investments.

join the message board at www.timingthemarket.ca the dudes there are great and willing to help a new investor.

ignore everything your bank tells you, they are set up to make it seem like mutual funds are the only thing becuase everything else is so risky. which is BS.

if you just want to invest a bit in a general area and leave it there try an ETF/exchange traded fund in a particular sector.

good book:

claude rosenbergs "guide to the stockmarket"

websites:

www.jsmineset.com for gold investing and the bible of precious metals outlook
www.yahoo.com finance, under each stock they have a message board that you can post questions and find good links to relavent stories.

good luck, and just dont sink it all into 1 thing.

J
 

SuperKennyK

TRIBE Member
Invest in precious metals. With growing demand in developing nations such as India and China, your money will be sure to grow.
 

DaPhatConductor

TRIBE Promoter
get in on the oil sands while you still can, they're blowing up huge. and invest in security too, the US just spent 4 billion on fear propaganda, so people will be mad scared and security will boom even more.

this advice would have been a lot better a couple years ago, but there is still time.

oh, and also: invest in that guy who can make gas out of garbage, he's gonna be huge.
 
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litespeed

Well-Known TRIBEr
bank stocks are a pretty safe long term investment.

RBC stock has gone up over $20 a share in the last year and just split a few weeks ago when it reached $100
 

nawberry

TRIBE Member
Railroads and bananas are where its at, go with Canadian Pacific (CP-T) and Chiquita (CQB-N).

Try to get an account with E-Trade so that your commissions are minimal. All that a broker will do is advise you against investing in bananas and railroads.
 

Big Cheese

TRIBE Member
nawberry said:
Railroads and bananas are where its at, go with Canadian Pacific (CP-T) and Chiquita (CQB-N).

Try to get an account with E-Trade so that your commissions are minimal. All that a broker will do is advise you against investing in bananas and railroads.

hahaha

railroads and 'nanners, together @ last
 
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Rataxès

TRIBE Member
nawberry said:
Railroads and bananas are where its at, go with Canadian Pacific (CP-T) and Chiquita (CQB-N).

Try to get an account with E-Trade so that your commissions are minimal. All that a broker will do is advise you against investing in bananas and railroads.

Your broker knows nothing.

-Rataxès L. Delmonte
 

2canplay

TRIBE Member
If you're a newbie, buy the ETF's - they track the market for little cost. The ETF's buy a basket of stocks in the same percentages/weights as comprise the major indicies (the Dow or the TSX or the S&P). Simply buy the ETF and it will move with the market, which for 80 years has averaged 8-9% per year or a double every 8 years.

Definetely don't buy a mutual fund, in Canada most funds charge 2.5% which reduces your future portfolio substantially. As well, many Mutual Fund managers trade in and out of stocks continually, increasing your cost (you pay the comissions when they trade) and your tax liability (you get taxed any capital gains tax). It's an awful investment.

Commodities are good but most of the base metal companies are subject to vagaries of the market and do not have any pricing power to raise prices in the way a 'branded' company has. For example, ABC Mining company can't pass on the increased cost of labour to their end customers - they can only charge the price of the commodity as it trades in Chicago or New York. A high commodity price isa good thing for these companies but any change in the price of the underlying commodity is VERY quickly priced into the stock using a discounted cash flow method, leaving little opportunity for new money to be invested profitably, unless you speculate on a higher price for the commodity - but speculating is not investing.

If you are only starting with a few grand, stick with ETF's - it will cost you $30 to purchase and .25% annually from there on.

Once you have a little more cash to deal with you can buy some individual stocks. If you buy good stocks in good companies (companies in good businesses which have the ability to raise prices regularly, can reduce costs through outsourcing or technological investments, etc.) you will do well over time. If you own stocks directly you pay no annual management fee and you can hold the stock forever meaning you pay no capital gains tax (unless your company is bought - and sometimes even that is tax free).

The banks are an obvious choice and should be in any serious portfolio. Same with insurers (Manulife, Power Corp, Sun, etc.) and some of the money managers (Power Corp, Dundee, CI Funds, etc).

Warren Buffett likes to buy good companies which have traded down for some temporary reason. Recently he has been buying Anhauser-Busch (Budweiser) because the stock price has fallen and because the company has a great brand and can continually raise prices in virtually any economic conditions.

Investing can be very rewarding but it takes a shit load of discipline and guts (to buy when prices are low and sell when they are high). As well, it takes time - its almost a part-time job for me, presonally. But I like it.

Until you learn more or if you don't have the time comittment, buy the ETF's.

Hope that helps.
 
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AdRiaN

TRIBE Member
1. Don't take advice from people on individual stocks. There is no such thing as a "hot tip."

2. Buy what you know. Having a specific interest and knowledge of a company's product is immensely helpful in identifying long-term growth opportunities. This goes beyond just reading analysts' reports (either professional or armchair). If you don't really know about anything, then buy ETFs as 2canplay mentioned.

3. Only invest as much money as you're comfortable losing. This allows you to sleep every night without worrying about what you read in the stock pages that day, and you won't make panicked decisions about your investments.
 

EltrikSoulCntlr

TRIBE Member
BOOYA SKI DADDY!

Get a copy of Jim Cramer's Real Money. This book is great if you want to make trades. If your long Buffet and other value types are good too. Cramer lays it out pretty simply. No real complex formulas. Just grade 6 math. You just need to put in the work...like anything else in life.
 
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JEMZ

TRIBE Member
My advice:

Don't take advice from people who are not licensed to give it. There is a whole bunch of "I have no clue of what i am talking about, but am going to talk anyway" going on around here.
 

funfuncheese

TRIBE Member
JEMZ said:
My advice:

Don't take advice from people who are not licensed to give it. There is a whole bunch of "I have no clue of what i am talking about, but am going to talk anyway" going on around here.

Fuck you too, buddy.
 
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