Stocks

[Oppa]

I want to get into the stock market. I want to buy long-term stocks in which it can slowly grow. I have no idea how to accomplish this.

For all the pros out there in the stock market, how should I start when it comes to investing.

What are the first steps into building a portfolio?

Should I even consider about purchasing stocks that have a very high risk factor but there is growth potential in the stock?

I am a college student working. The money that will be invested will primarily come my savings.

 

[synergy1]

That would be value investing. Two books come to mind , one was recommended on this forum a few years back. Buffetology outlines how to value a stock purchase. Basically it gives your the guidelines to do your own research, than you pull the trigger when your comfortable. Another good one is The Intelligent investor written by Benjamin Graham. Its a bit more detailed, but gives you a good perspective on how corporations operate at the financial level.

For me, the markets are a bit over priced. The risk at a very basic level comes at how "over priced" things are, and this is typically reflected by the Price per earnings, or P/E ratio. I like to buy at under 15 P/E, and many issues are at over 30. That's a little expensive for my taste

 

[backbreaker]

you need to diversify yo' bonds n!gga

 

[Unbridled_Phoenix]

Research mutual funds. How they work, how to gauge their performance, who the esteemed fund managers are, etc.

My company is selling variable annuities like hotcakes. But they are geared towards middle-age, medium-to-high net worth individuals. They are the perfect instrument to roll your IRAs into when you are 45 is the gist of it.

So you just need to do some research into how IRAs work and open one at your bank, or with a financial advisor. Make sure you fund it!

 

[ENIGMA16]

Oppa you want to get the book "How to Make Money In the Stock Market" by Gordon L. Eade. This is hands down the best book written on investing. It is a fairly short book (about 60 pages) based on Modern Portfolio Theory and specifically the work of John Bogle.

You can actually find almost all of Eade's book here. I also remember finding a .PDF file of it somewhere, but can't seem to locate it now. Eade distributes the book himself, and sells it at break even prices.

If you want, I can give you his email address and you can get into contact with him about obtaining a hard copy of the book.

Seriously, Eade's book is the best there is.

 

[synergy1]

Oppa you want to get the book "How to Make Money In the Stock Market" by Gordon L. Eade. This is hands down the best book written on investing. It is a fairly short book (about 60 pages) based on Modern Portfolio Theory and specifically the work of John Bogle.

You can actually find almost all of Eade's book here. I also remember finding a .PDF file of it somewhere, but can't seem to locate it now. Eade distributes the book himself, and sells it at break even prices.

If you want, I can give you his email address and you can get into contact with him about obtaining a hard copy of the book.

Seriously, Eade's book is the best there is.

A statistic cited in Graham's book states that index funds have out performed most higher frequency trading (a couple trades per year). Definitely the way to go for people who want to put in limited research.

I read a little bit of the preview and like the style. Shoot me a PM or just post his email and I think I am going to order it for myself!