What are some good companies to invest in for a first timer?

Question

Hello. Okay so I have finally saved up 1000 dollars to invest and I am so excited. I have been watching the market for about a year now and I am ready..but saying and doing are two different things, and now that i'm "doing", i've developed cold feet so, Yahoo community I ask.....what are some good companies to invest in for a VERY first timer?

Answer 1

Well it really depends on your Risk level.  You should aways have a well rounded portfolio.  With only 1000.00 I'd suggest a No-Load mutual fund or EFT.  If you really want to go just stocks.   I'd tell you to look at Blue Chip stocks ONLY.  Consider the Oil/Gas industry, or Financial Industry.  IE:  Buy Stock in Big Oil companies or Banks.

It's a good SAFE starting place.  Even if the market falls banks will not normally lower their dividends (hence your yield will be higher and you'll generate cash flow).  If the stock raises ....even better.

Good Luck

Answer 2

Congrats on saving up some money.

There are some good ideas here and here is my own .02.

Just like going to any other store there are things that are priced at retail and things that are "on sale".

Right now anything related to Oil and other commodities is fully priced.

The Banks and other financials are on THE DISCOUNT RACK.

You could buy a CD as someone said and get 3-4% or you could buy stock in Bank of America (BAC) and have pride of ownership and get a 9% yield in dividend payments with the strong chance of price appreciation.

Bank of America, JPMorgan, Citigroup will all be around 20 plus years from now and today in 2008 they are on sale.

This is what I would buy with 1000 dollars.

Good luck!

Answer 3

Don't trust any, try a cd or a money market account. You can get a great return in a short time with a cd. If you do it at a local bank, then you have the reassurance that your money is close to you and not in some cyber world that you cannot touch or see.

I have been there the past two years and lost lots of money through companies who were supposed to be secured.

Stocks are all speculation and fear, and it is no real place for real money when you don't have thousands you can afford to lose. If you can afford to not worry about and it means nothing to you then go ahead, but if it is all you have, try something secured.

Etrade.com is offerring 3.15% on savings accounts right now, and my local Insurance company who now offers IRA's is giving 4%on money markets.(Texas Farm Bureau) My local bank, Amegy is offerring high rates on cd's for a six month term.

There are so many more options than to take high risk chances with your money. Many people make lots of money in the stock market no doubt, but they know it well and understand the serious complexities of it.Before you invest Read the book called "get your share" by Julie Stav.

Good luck.

Answer 4

Follow Warren Buffett, he has large stakes in coke (KO) and BNSF(BNI) to name a couple of his stock holdings.

Answer 5

really save your money the stock market is just gambling with your money.

Answer 6

Invest in Technology companies.  With other sectors taking a beat now with crumbling markets, the tech stocks are sure to bounce back now.

Also you can consider investing in Oil stocks now as the commodities are on a boil now and are expected to continue to gain further in the coming two - three quarters

Answer 7

At the moment, I think you could short any stock and make money.  Well, nearly.  

A lot of people think that the oil bubble is going to pop.  If it does that would knock oil related stocks down, as well as alternative energy stocks.  There's still a lot of future in alternative energy.  

The alternative energy stocks, like solar and wind, do seem to be the way to go, especially if Obama gets elected.  Personally, I would go with an ETF.  There are some good ones out there: TAN, KWT, GEX, FAN, PWND.  I think one of the most widely held and traded ones is Powershares Wilderhill Clean Energy (PBW).  It covers a lot of companies related to alternative energy, including batteries, energy management, and lighting.   It isn't as volatile as a solely solar of wind related ETF.  Look into it.