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re: If you had 5-10k to invest and you were in college now..

Posted on 4/4/13 at 10:42 am to
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/4/13 at 10:42 am to
tom how valuable is this $5K-10k to you.

1.Safe but great return - Phillip Morris, with a 3.5% yield today and 10% increase in yield every yr moving forward for the near future....this cigarette maker will prob be one of the top 5 stocks of the next 25 years if not #1

2.potentially unreal return w/lots of risk - AMAZON....2700x earnings price, unreal potential, if they put it together, could be the next wal mart and change the way retail does business

its you're choice do you want to invest $5k and go safe and steady or do you wanna swing for the fences? youre young i say buy 20 shares of amazon and go on about your life and if amazon does what i think it will.....youll jump for joy....

simply ask those around you, everyone seems to be using amazon more and more, nobody i know buys dvds,video games, computers from anywhere but.....you do the math....this will eventually boom it seems
Posted by Maderan
Member since Feb 2005
806 posts
Posted on 4/4/13 at 10:54 am to
It depends on your objectives.

You can build some wealth by diversifying but the secret to becoming rich is being concentrated.

Most of the ultra wealthy of the world built it by being very concentrated (one company) and being right. Many more examples of being wrong than right obviously.

This is an article from NYU about not diversifying, pretty good read.

I think that NYU also had a class on this. The class focused on picking the one company you would invest in and diversification was a tool for those who already had wealth to manage risk. From what I read the class involved a ton of research into one company and if you lost everything by picking the wrong company it just made you a better investor because next time you would learn from the process and do better research. Seemed interesting.
Posted by stonerolledaway
the villages
Member since Jul 2011
982 posts
Posted on 4/4/13 at 11:28 am to
60% vanguard total stock index
40% vanguard total bond index

low fees, own the whole market, if stocks doing great, you're in, if stocks doing bad, you're not all in....
Posted by LSUTOM07
Baton Rouge
Member since Dec 2011
765 posts
Posted on 4/4/13 at 1:45 pm to
quote:

tom how valuable is this $5K-10k to you.


Not valuable at all. It was money made from over time last summer so i was not money I expected to make. I want to act like I never made that money and put it to work.

quote:

ts you're choice do you want to invest $5k and go safe and steady or do you wanna swing for the fences?


I am looking for a sizable return. It's not worth it for me to tie up 5k for the next 15 years just to have 8k to pull out. I realize the higher the reward the higher the risk.

With Amazon at 2700x earnings, can it's earnings ever catch up to its expectations?
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/4/13 at 9:01 pm to
amazon's PE is a product of accounting trickery.....I was fooled too early on, but I read more and more, amazon in reality is using all profits to build distribution centers to make delivery faster and cheaper....the time is coming when next day delivery will be here and when it is AMAZON wil dominate....look around you, everyone I know is using amazon prime for everything shopping wise, its tentacles are everywhere
Posted by bryso
Member since Dec 2006
27130 posts
Posted on 4/5/13 at 12:10 am to
quote:

I guess Apple is a bad example. I mean more speculative plays



i'd say 15 years ago apple was speculative as frick
Posted by bryso
Member since Dec 2006
27130 posts
Posted on 4/5/13 at 12:11 am to
quote:

I am looking for a sizable return.


aren't we all
Posted by Chris4x4gill2
North Alabama
Member since Nov 2008
3092 posts
Posted on 4/5/13 at 7:01 am to
Read the thread asking about Google - The OP mentions his investment of 5K in blue chips with frip = 41K now. Thats a pretty decent return.
Posted by RandySavage
Member since May 2012
30814 posts
Posted on 4/5/13 at 7:16 am to
I'd use the money to enjoy college more.
Posted by jmtigers
1826.71 miles from USC
Member since Sep 2003
4970 posts
Posted on 4/5/13 at 7:27 am to
quote:

I'd use the money to enjoy college more.

This.

Or maybe figure out away to invest it in your future either through education or networking... something along those lines. Your future earnings are by far your greatest asset.
Posted by LSUTOM07
Baton Rouge
Member since Dec 2011
765 posts
Posted on 4/5/13 at 7:48 am to
College is paid for and rent is cheap. This is literally extra money. I make more than enough to cover monthly expenses plus $ 300-$400 extra to spend a month on whatever.
Posted by RandySavage
Member since May 2012
30814 posts
Posted on 4/5/13 at 11:25 am to
quote:

College is paid for and rent is cheap. This is literally extra money. I make more than enough to cover monthly expenses plus $ 300-$400 extra to spend a month on whatever.


Go on a trip or three.
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