Questions about investing

[Gerbs]

i was wondering what is good to invest in to make a good amount of profit in the long term? i was planning to start investing very early to maximize profits.

thanks for the help guys :-)
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[q0192837465]

I suggest index funds to start and then move to ETF after you accumulated enough capital. This is mostly for lazy ppl who don't want to actively trade. Alternatively, you can buy some stable dividend paying stocks so the fluctuation in market value is not of too much concern.

[Chi_Na]

If you consider 1-5 years long term I dont know.

However if you consider 10-30 years long term then some good investments to look at are MKL, BRK.B and LUK. These investments will only provide you a dependable amount of return only if you never impede the progress, unconcerned of where the market is, as it will hinder profits have you lock in during losses or even rates. Having said that this works well if you are able to support yourself or significant others for at least a year.

About the stocks mentioned above their values have elevated numerous times regardless of market fluctuations. Price may change if these companies trigger any stock splits or stock merges, Value may change if these companies alter significant internal issues.
Anyways to cut this post short these stocks will beat any high interest savings, or typical mutual funds, RRSPs, etc. Take a good look at Ian Cumming's LUK it has outrun Warren Buffet 2:1, have you invested $1.00 in 1991 ($1.65 today) and withdraw it today you would receive slightly over $20, per. Had you invested $10,000 20 years ago it would be worth $200,000+ now.
For any other investing, of course you should research before you purchase, as the more competent you are about certain investments the more you can minimize your losses for things that are out of your own comprehension.

Good luck.

** By the way there are always a level of uncertainty in everything, just posting this the second time for anybody reading it. As for example the historical prices/growth of stocks mentioned above may or may never reproduce these same amounts possibly due to major changes in the company that may occur, that's up to you to research. More you know, the less risk.

[Gerbs]

Originally Posted by Chi_Na

If you consider 1-5 years long term I dont know.

However if you consider 10-30 years long term then some good investments to look at are MKL, BRK.B and LUK. These investments will only provide you a dependable amount of return only if you never impede the progress, unconcerned of where the market is, as it will hinder profits have you lock in during losses or even rates. Having said that this works well if you are able to support yourself or significant others for at least a year.

About the stocks mentioned above their values have elevated numerous times regardless of market fluctuations. Both price or value may change if these companies trigger any stock splits or stock merges. Warren Buffet's BRK.B is an example. Anyways to cut this post short these stocks will beat any high interest savings, or typical mutual funds, RRSPs, etc. Take a good look at Ian Cumming's LUK it has outrun Warren Buffet 2:1, have you invested $1.00 in 1991 ($1.65 today) and withdraw it today you would receive slightly over $20, per. Had you invested $10k 20 years ago you would have $200k now.
For any other investing, of course you should research before you purchase, as the more competent you are about certain investments the more you can minimize your losses for things that are out of your own comprehension.

Good luck.

** By the way there is always a level of uncertainty in everything, just posting this the second time for anybody reading it. As for example the historical prices/growth may or may never reproduce these same amounts and other micro level problems that may occur, that's up to you to research. More you know, the less risk.

Im being supported by family probably for another 2 - 8 years tops. Im just starting to look into stocks. A lot of this investing business is still being clueless, but im trying my best to look into everything.

[Hollyshiit]

OP,

Judging from your time horizon and investment mandate, i would suggest you allocate at least 50 to 60% of ur portfolio into managed bond funds, fixed income or money market.

Then 20-30% into a managed equity or commodities fund and maybe the remaining 10-20% into stocks or a ETF like Q0192 stated above.

The bond fund will provide you with a steady stream of income and a low correlation to the overall market while the managed equity or commodities fund will help you reduce market risk.

Also, the 10-20% of equity will give you some skin in the game so you can take a more active approach with the market.

Remember investing is not about looking for significant gains, but rather reducing beta/risk and increasing alpha "excess return over the market".

Ppl will tell you this approach is slow but till you get a better knowledge in the financial market, i would recommend you to keep stock picking to a low or minimal.

hope that helps..