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Author: rwt999 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: long, long term investing Date: 12/29/1999 4:09 PM
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I'm only 20, so I won't be retiring for at least 45 years, but I know the power of compound interest. I'm thinking about starting a Roth IRA, but I have little time to watch individual stocks. What's the best way to invest $2000 that doesn't require my attention? I've thought about an S&P 500 index fund, but is there anything that will beat that?
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Author: rustedSoul Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17069 of 75340
Subject: Re: long, long term investing Date: 12/29/1999 6:56 PM
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rwt99,

More aggressive investments you can buy that are passive, low cost, and diversified are the so-called "sector" index funds and instruments. Some of these investments are called "investment trusts" while others are called "depository receipts".

They offer the potential of "beating the market" because they are not as diversified. So, they can both win and lose to the market. Here are my favorites:

QQQ - up 80% 1998, up 100% 1999 (Nasdaq 100)
VIGRX - the "growth" S&P500 index fund.
HHH - top 10 internet stocks by market cap. See Note*

I would also throw in another investment type, namely internet capital firms: CMGI, ICGE. These are stocks that are very diversified in internet properties. These are not for the faint of heart because they are very volatile.

You could also invest in the numerous "internet" mutual funds. I am not partial to these because of the high fees they charge.

All the above investments put you right where a 20 year old should be: growth stocks.

rustedSoul

* - HHH is slightly more costly because it charges a yearly management fee. Read the prospectus on this and the other investments before you buy.


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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17081 of 75340
Subject: Re: long, long term investing Date: 12/29/1999 10:39 PM
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I'm only 20, so I won't be retiring for at least 45 years, but I know the power of compound interest. I'm thinking about
starting a Roth IRA, but I have little time to watch individual stocks. What's the best way to invest $2000 that doesn't
require my attention? I've thought about an S&P 500 index fund, but is there anything that will beat that?


Don't have any time to learn how to earn millions? Must have a rather busy life.

You have the right Idea. If you want more risk try QQQ. Put QQQ in a quote field to investigate. Since you have many years to go I think the risk is ok.

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Author: Helter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17092 of 75340
Subject: Re: long, long term investing Date: 12/30/1999 8:01 AM
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I'm only 20, so I won't be retiring for at least 45 years, but I know the power of compound interest.

That's a non-sequiter(sp?). If you are 20 - and know the power of compound interest - Why would you plan on working to 65?

Aim High - Retire Early! Look for posts by intercst and his web page - maybe you'll be more interested in researching investments after looking into it.

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17095 of 75340
Subject: Re: long, long term investing Date: 12/30/1999 9:06 AM
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<<<I'm only 20, so I won't be retiring for at least 45 years, but I know the power of compound interest. I'm thinking about starting a Roth IRA, but I have little time to watch individual stocks. What's the best way to invest $2000 that doesn't require my attention? I've thought about an S&P 500 index fund, but is there anything that will beat that? >>>

I'm not being sarcastic or condisending, but go to school. The Fool's School. Read about the growth screens from the Foolish Workshop. Two easy, non-time consuming screens with S&P 500 beating results are RP4 and Keystone. They wouldn't take more than 15 minutes per year to do. If you can't spare 15 minutes per year, you're either too busy are don't have your priorities in order.

JLC

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Author: OldOne Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17126 of 75340
Subject: Re: long, long term investing Date: 12/30/1999 10:41 PM
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If you are completely convinced you are always going to be content working for someone else and having them make fundamental decisions about your life then just put the money in an index fund and be done with it.

By putting a few hours a month into investing, in less than 10 years I have gone from having almost no savings to being almost independent. Darned good thing too, because I work in a declining industry and may need to be on my own sooner than I planned when I was 20.

Right now the job picture looks pretty good in most places, but when the economy takes a downturn, and it absolutely will do this more than once in the next 45 years, you will stand much taller with a sizeable portfolio than without one.

Many career paths that were hot 30 years ago are now dead ends, and believe me, spending a few hours a month tracking my portfolio at a time of my choosing, in my own home, is a lot better than learning a new career late in life.

Plus, I am beholden to no one, can never be fired from being manager of my own portfolio, and will never have to go looking for a job with hat in hand.

Look upon managing your own portfolio as being similar to owning a business of your own, except the the odds are stacked in your favor instead of against you. Something like 80% of small businesses fail in the first five years. I would bet that 90+% of the people who have been following the Fool for 5 years are sitting on a pretty sizable chunk of cash (well O.K., stocks then), and have a lot fewer wories than most.



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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17129 of 75340
Subject: Re: long, long term investing Date: 12/30/1999 11:29 PM
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OldOne wrote,

By putting a few hours a month into investing, in less than 10 years I have gone from having almost no savings to being almost independent. Darned good thing too, because I work in a declining industry and may need to be on my own sooner than I planned when I was 20.

I second OldOne's comments.

I spent about 10 hours per week reading about investments from the time I was age 25. (I did most of this research while at work. I found that if you put a copy of Forbes or Fortune inside a company 3-ring binder, management will think you're doing "real" work.) I retired in 1994 at age 38 even though I never earned over $100k and had no company stock options.

The time I spent learning about investments were by far the most highly compensated hours of my working career.

intercst



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Author: DHatch Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17171 of 75340
Subject: Re: long, long term investing Date: 1/1/2000 6:39 AM
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intercst Date: 12/30/99 11:29 PM Number: 17129
----------------------------------------------------

<<I spent about 10 hours per week reading about investments from the time I was age 25.>>

Good for you, and it paid off.

<<(I did most of this research while at work.>>

Uh oh, that doesn't sound right.

<<I found that if you put a copy of Forbes or Fortune inside a company 3-ring binder, management will think you're doing "real" work.)>>

That really does not sound right, to paraphrase:

"You cheated, you lied, you told them you loved them", and then you unjustly enriched yourself at the expense of others by using resources of others who were paying you for you to otherwise use said resources and finally abandoned your victims at your prime.

<<I retired in 1994 at age 38 even though I never earned over $100k and had no company stock options.>>

I suppose some congratulations are in order for even a successful embezzeler, but you had better let this be our little secret, lest a former boss hear about it and come after you with a big stick.

It sure seems as if one must watch those sneeky employees just about all the time.

.02



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Author: DHatch Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17172 of 75340
Subject: Re: long, long term investing Date: 1/1/2000 7:01 AM
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JLC Date: 12/30/99 9:06 AM Number: 17095
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<<They wouldn't take more than 15 minutes per year to do.>>

Oh, yuk! Why not just invest in QQQ, SPY, and DIA and save the mythical 15 minutes a year.

<<If you can't spare 15 minutes per year, you're either too busy are don't have your priorities in order.>>

How Judgemental and Parental can you get?

Jeez, aren't you being a bit hard on a kid who asked a legitimate question?

Have you forgotten what it is to be young? Or are you just jealous?

Young people should do young people stuff and old judgemental farts should do old judgemental fart stuff.

.02



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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17228 of 75340
Subject: Re: long, long term investing Date: 1/2/2000 3:38 PM
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<<<<<If you can't spare 15 minutes per year, you're either too busy are don't have your priorities in order.>>

How Judgemental and Parental can you get?

Jeez, aren't you being a bit hard on a kid who asked a legitimate question?

Have you forgotten what it is to be young? Or are you just jealous?

Young people should do young people stuff and old judgemental farts should do old judgemental fart stuff.
>>>

I don't think 35 qualifies as "old judgemental fart", although some 20 year olds might think so. I do lead a busy and hecktic lifestyle both professoinally and socially and I still find time to easily handle my portfolio.

I do remember what it was like to be young and in college. The reason I worked out 2+ hours everyday and played ball 2+ hours twice a week was because I had a very valuable commidity, time. I'm sure college hasn't changed too much since my days.

JLC

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