Stock investing

[PurplDrank]

Does anyone here have stocks in the stockmarket? 

 

I opened an account and put in $18,000 USD. 

 

Heres every stock i put money into and why:

 

Starbucks: look, 10 years from now i truly believe starbucks is going to be one of those brands thats known to be snobby. Snobby customers and snobby employees with a snobby CEO. It just screams snobby. 10 years from now this brand will be like abercrombie and fitch and holister. In fact it has recently even had some customer service issues that have made the news. However, i believe theres a lot left to squeeze out of this brand, particularly its recent expansion into asia. Estimates say that throughout asia there will be 5,000 to 8,000 more locations by mid 2020. Starbucks has consistently grown through the years with only very very small dips in its stock. 

 

CVS pharmacy: this stock has a 52 week high of $85 per share. When i bought shares of CVS a few days ago it was worth $55 per share. The recent merger with aetna insurance company has lowered this stock. However, with drug reimbursements lowering, CVS now has a second form of income. Not to mention most of its locations will be doing sleep apnea tests and blood tests. Well all this merger stuff blows over in a year i believe i could sell this stock for closer to $85 a share, almost doubling my profit. 

 

Marathon petroleum: Gas prices here in the United States have stayed relatively stable over the last 2 or 3 years. I believe this is about to change. Even if it is only a small change. Everyone needs gas right now. Smart cars and electric cars are only just recently being developed to there full manufacturing potential. 

 

Let me know what you think

[TempestCatto]

Do you use https://robinhood.com/ ?

I have an account, but I don't really think I'm ready to start investing. I sure as hell wish I had 18k!

[PurplDrank]

Just now, TempestCatto said:

Do you use https://robinhood.com/ ?

I have an account, but I don't really think I'm ready to start investing. I sure as hell wish I had 18k!

 

 

I use td ameritrade. Its one of the top rated ones you can use. 

 

With that said i was a bit nervous too. But do lots of research before you buy. Only stick to companies that have alot of money and or well known. Do research online to see if theres rumors of bankruptcy. If you dont recognize the company then dont do it. 

 

[harryk]

$18k seems like a lot to put into only three stocks (assuming this is a significant amount of money for you and this is all you have invested).

 

Investing in specific companies can be fun especially if you enjoy following the latest related news and such (for me personally I have money invested in a number of tech companies) but if you really want to grow your funds you should really diversify. If just one of those companies tanks you'll loose a decent amount of money.  

[PurplDrank]

3 hours ago, harryk said:

$18k seems like a lot to put into only three stocks (assuming this is a significant amount of money for you and this is all you have invested).

 

Investing in specific companies can be fun especially if you enjoy following the latest related news and such (for me personally I have money invested in a number of tech companies) but if you really want to grow your funds you should really diversify. If just one of those companies tanks you'll loose a decent amount of money.  

Yeah, im working and looking into some others. Not all the money is invested into those. Im looking to expand to different industries but only if it seems right and i trust the company. 

 

I also forgot to put into there another company called lincoln financial LNC is another one i have invested in for a total of 4 stocks. 

 

IF you have any suggestions let me know. I thought about Mcdonalds but it just doesnt seem right to me right now. 

[harryk]

Lately I've been tempted by both AMD and Nvidia. 

 

AMD appears to be at a peak so my logical side says it's silly to invest now. But with the recent CPU updates it appears poised to overtake Intel in the consumer market. This could be the beginning of AMD becoming a mega company and the stock really establishing itself at a higher value.

 

As for Nvidia, its down from where it's been the last couple years. Granted that was during the crypto boom. But again looking at the recent releases, even though AMD has made some very competitive GPU's, Nvidia still owns the GPU market particularly in the mid to max performance space. I don't necessarily see Nvidia having huge growth but doubt they will lose value and instead have steady growth over the next few years. Though be wary of stagnation. 

 

Perhaps the smart thing would be to invest in all three big chip makers; Intel, AMD, and Nvidia. We're at a trying time for all three and it's impossible to know who's going to come out on top. Barring market-wide or industry-wide swings, at least one of them should see growth even if it is at the cost of the others. 

[dalekphalm]

@PurplDrank I would suggest that you keep individual stock trading to a percentage of your total investments. I would limit it to say, 25% of your investments, max. Direct stock investment is significantly more volatile.

 

Ensure that you're investing some of your money into a diversified portfolio (ETF's are good places to do this).

 

I have around $600 in direct stock investing, at the moment. Most of it are Canadian companies, but I've got a share each of AMD and Coca-Cola. Most of my investments are in an ETF from Wealthsimple (Shameless plug: PM for referral code).

 

Most of the direct stocks I buy, I do because they are well established, stable companies that are regularly profitable, and regularly pay out dividends (So you earn actual money, in addition to the rise of the stock price).

[PurplDrank]

1 hour ago, dalekphalm said:

@PurplDrank I would suggest that you keep individual stock trading to a percentage of your total investments. I would limit it to say, 25% of your investments, max. Direct stock investment is significantly more volatile.

 

Ensure that you're investing some of your money into a diversified portfolio (ETF's are good places to do this).

 

I have around $600 in direct stock investing, at the moment. Most of it are Canadian companies, but I've got a share each of AMD and Coca-Cola. Most of my investments are in an ETF from Wealthsimple (Shameless plug: PM for referral code).

 

Most of the direct stocks I buy, I do because they are well established, stable companies that are regularly profitable, and regularly pay out dividends (So you earn actual money, in addition to the rise of the stock price).

 I would sell AMD now. Its almost to its peak of 52 week high. With that said you could hold out and see if it goes higher. I doubt it will. 

 

I heard coca cola is a good one to have. Its an iconic american brand that no matter what happens economically it will survive. Plus i heard coke has a pretty good dividend payout. 

 

I believe the ETF i have at the moment is LNC (lincoln financial) at 100 shares. But i actually just got control of this account from my uncle as i asked him to keep the account safe for me. LNC is something i know has been inthis account for atleast two years. 

 

My general rule of thumb is to not invest over $2,000 in each company. Also the obvious one is to buy low and wait for it to go high, for example like what im doing with CVS and marathon petroleum. Starbucks has consitently been growing for 5 years and will continue to do so. Its starting to become an icon much like mcdonalds and coke. Though i believe the end of starbucks will be happening in 15 years. 

 

Ill only invest in companies that have a significant cash flow or will be soon. 

[PurplDrank]

2 hours ago, harryk said:

Lately I've been tempted by both AMD and Nvidia. 

 

AMD appears to be at a peak so my logical side says it's silly to invest now. But with the recent CPU updates it appears poised to overtake Intel in the consumer market. This could be the beginning of AMD becoming a mega company and the stock really establishing itself at a higher value.

 

As for Nvidia, its down from where it's been the last couple years. Granted that was during the crypto boom. But again looking at the recent releases, even though AMD has made some very competitive GPU's, Nvidia still owns the GPU market particularly in the mid to max performance space. I don't necessarily see Nvidia having huge growth but doubt they will lose value and instead have steady growth over the next few years. Though be wary of stagnation. 

 

Perhaps the smart thing would be to invest in all three big chip makers; Intel, AMD, and Nvidia. We're at a trying time for all three and it's impossible to know who's going to come out on top. Barring market-wide or industry-wide swings, at least one of them should see growth even if it is at the cost of the others. 

No no no. Only invest in one chip maker. But its late for AMD stock atm so avoid them for now. 

 

As another poster stated diversify your portfolio

[dalekphalm]

2 hours ago, PurplDrank said:

 I would sell AMD now. Its almost to its peak of 52 week high. With that said you could hold out and see if it goes higher. I doubt it will. 

I would only sell now if I were playing the short game. Which is foolish, at best. Sure, you can get lucky, but more often then not, playing the short game will lose out more than just holding fast for the long term.

 

Eventually, should AMD continue to improve financially as they are currently doing, they'll start to issue dividend payments again. Aside from that, their stock will rise again. Perhaps not soon, but eventually.

2 hours ago, PurplDrank said:

I heard coca cola is a good one to have. Its an iconic american brand that no matter what happens economically it will survive. Plus i heard coke has a pretty good dividend payout.

The last dividend payment was $0.40 USD per share, which considering that their shares aren't very expensive, that's pretty good. They're reliable, and they reliably issue dividends. They have a diverse product lineup, so there's little chance they will start to under perform massively.

2 hours ago, PurplDrank said:

I believe the ETF i have at the moment is LNC (lincoln financial) at 100 shares. But i actually just got control of this account from my uncle as i asked him to keep the account safe for me. LNC is something i know has been inthis account for atleast two years. 

The ETF I use purchases multiple stock funds in a very diversified spread, and on a continual basis. They also rebalance the portfolio automatically (Say, for example, the realestate portion gains a bunch of value and brings that section of the portfolio to have a too high percentage of the total portfolio - it will automatically sell some of those shares and redistribute to get the total percentages of each type of investment back to the target).

2 hours ago, PurplDrank said:

My general rule of thumb is to not invest over $2,000 in each company. Also the obvious one is to buy low and wait for it to go high, for example like what im doing with CVS and marathon petroleum. Starbucks has consitently been growing for 5 years and will continue to do so. Its starting to become an icon much like mcdonalds and coke. Though i believe the end of starbucks will be happening in 15 years. 

Whether it's $2000 or $200, ultimately it should be based on how much you have total to invest, and what your goals are. If you can afford to invest $2000 directly into a single stock, while also maintaining other investment goals (such as retirement, diversified funds, etc).

2 hours ago, PurplDrank said:

Ill only invest in companies that have a significant cash flow or will be soon. 

Certainly not a bad idea.

2 hours ago, PurplDrank said:

No no no. Only invest in one chip maker. But its late for AMD stock atm so avoid them for now. 

It's never too late, unless the company is going to go bankrupt - and AMD is in an excellent financial position now - so @harryk if you want to invest a few spare bucks in AMD, don't let this stop you.

 

Also there's nothing wrong with investing in both AMD and Intel, either. You balance out the risk of one of them tanking. And assuming they both do well, you can end up earning dividend passive income, even if the shares don't grow particularly much. You don't want to invest too heavily in any specific industry, though. So don't put all of your money into the tech sector (or sub sectors, like Processor/Chip makers, etc).

 

While each persons goals and risk levels will be different, you generally want to ensure you're investing in a bunch of industries that are totally unrelated to each other.

 

[STRMfrmXMN]

You shouldn't necessarily invest in a company because you like their product stack and it's doing well... per se.

 

I'll have to see what all I can do through Vanguard. My money is tied up right now and I'm doing strictly long-term things with my money that are "big" goals - moving into a new place and retirement, one that eats up money for now and one for later.

 

AMD seems a lot less volatile than in the past. Spend your money on them as you wish, but there are "safer" stocks to buy from more established companies. Dalek mentioned he has Coca Cola stock, which is good. I was originally planning to buy IBM stock but have taken a backseat until I recoup some money.

[PurplDrank]

On 7/14/2019 at 1:40 AM, STRMfrmXMN said:

You shouldn't necessarily invest in a company because you like their product stack and it's doing well... per se.

 

I'll have to see what all I can do through Vanguard. My money is tied up right now and I'm doing strictly long-term things with my money that are "big" goals - moving into a new place and retirement, one that eats up money for now and one for later.

 

AMD seems a lot less volatile than in the past. Spend your money on them as you wish, but there are "safer" stocks to buy from more established companies. Dalek mentioned he has Coca Cola stock, which is good. I was originally planning to buy IBM stock but have taken a backseat until I recoup some money.

Coca cola and mcdonalds are safe bets. 

[TetraSky]

1 hour ago, wallstreerbear77 said:

Hey!
I like your thoughts and i agree with you.

This thread is OLD, why revive it just to say that and bring nothing new?

There's a newer one available here:

 

[Zodiark1593]

9 minutes ago, TetraSky said:

This thread is OLD, why revive it just to say that and bring nothing new?

There's a newer one available here:

 

In all fairness, my thread is already past a year old. 
 

Good god, time flies. I’ll be turning 30 in a couple months too. Should I preorder my coffin yet?

[TetraSky]

1 minute ago, Zodiark1593 said:

In all fairness, my thread is already past a year old. 
 

Good god, time flies. I’ll be turning 30 in a couple months too. Should I preorder my coffin yet?

It might be past a year old, but it's still technically "active". Unlike this one that hasn't seen a reply in 3 years. 

And yes, once you're past 25, time just seems to accelerate. It flies by you and before you know it, you're past your prime and it's all downhill from there. Joint pain, lower back pain, hairloss, vision decreasing, heartburn all the time. If you don't already have a kid past 35, you may as well make a cross on ever having one for yourself or of ever seeing any grandkid... Aging sucks.

[Zodiark1593]

26 minutes ago, TetraSky said:

It might be past a year old, but it's still technically "active". Unlike this one that hasn't seen a reply in 3 years. 

And yes, once you're past 25, time just seems to accelerate. It flies by you and before you know it, you're past your prime and it's all downhill from there. Joint pain, lower back pain, hairloss, vision decreasing, heartburn all the time. If you don't already have a kid past 35, you may as well make a cross on ever having one for yourself or of ever seeing any grandkid... Aging sucks.

Didn’t even take to 25 to feel the acceleration. From high school graduation, it feels like I’d been set on a fast track rollercoaster that I wasn’t at all prepared for. Fast forward, my Aunt died of cancer, followed a few years later by my own Mom (at 46), still at a kind of lousy job, working on getting a photography business of my own off the ground so as to actually get somewhere in life (and finally find a place of my own), as college didn’t work out, all the while fighting off depression. 
 

It’s, been something. Dating isn’t even on the horizon, let alone a child of my own. Not all bad though. As a person (outside financial successes of course), I’d assess that I’d come a very long way from how I was. While still as introverted as ever, I’d become much more empathetic and studious. 
 

Sorry for the off topic brief rambling in an already deceased thread.