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Learning to Invest / Investing Beginners


Subject:  Re: Investing $5000 advice Date:  9/21/2012  1:59 AM
Author:  kahunacfa Number:  26202 of 27416

I agree with the 100% in equities advice. However, rather than funds of any kind, I almost always recommend buying shares of individual companies that you like and admire if you can buy them at reasonable prices.

What do you like to buy and use computers, electronics products like cell phones, sport equipment, coffee at Starbucks. Tooth paste shaving needs <consider Proctor & Gamble(PG)> for example. -- A sometimes useful Valuation Tool is here: If you do buy individual stocks do not ever pay more that that "Model's" Intrinsic Value

But first read investment books before you invest in individual stocks. My recommendations: "One Up on Wall Street" by Peter Lynch, Intelligent Investor by Benjamin Graham, "Real Money" by James J. Cramer, "Security Analysis", 1934 edition by Graham, Dodd & Cottle. "A Random Walk Down Wall Street" by Burton Malkeil, "Portfolio Theory and Capital Markets" by William F. Sharpe, and many others.

Kahuna, CFA
Investment Professional
1974 - Present

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