$5000 to invest "Need your opinions"

[MikeMike]

amd did me good for a little, but right now, let stuff drop, and wait for google.

MIKE

 

[DaveSimmons]

Originally posted by: nourdmrolNMT1
amd did me good for a little, but right now, let stuff drop, and wait for google.

Google is going to be a terrible buy for anyone who can't get the initial offering price -- first day most buyers are going to pay a huge premium because their orders won't be processed early enough. After that the stock is likely to be overpriced for awhile because so many people bought in just because they use google all the time.

Some day-traders who time it right could make a killing though.

You should never buy a stock just because you like the product, without understanding its business model and long-term prospects.

 

[CubicZirconia]

Originally posted by: KraziKid

Originally posted by: Transition

Originally posted by: KraziKid
My friend invested in Microsoft around March, and made about $4000 dollars by July (He wanted to get back his money he lost in Cicso (~$3000)).

What was his initial investment?

I don't remember. I will ask him tomorrow. I believe it may have been around $1000.

Assuming your friend invested his $1000 dollars when Microsoft stock was at its March low of ~22.50 and then sold it when it was at its July high of ~27.75, his original investment would have turned into $1230.60. In order to make $4000 over the same period he would have had to invest ~$17000, not $1000.

 

[dafatha00]

Originally posted by: KraziKid

Originally posted by: Transition

Originally posted by: KraziKid
My friend invested in Microsoft around March, and made about $4000 dollars by July (He wanted to get back his money he lost in Cicso (~$3000)).

What was his initial investment?

I don't remember. I will ask him tomorrow. I believe it may have been around $1000.

Exaggerate much?

 

[Hector13]

Originally posted by: CubicZirconia

Originally posted by: KraziKid

Originally posted by: Transition

Originally posted by: KraziKid
My friend invested in Microsoft around March, and made about $4000 dollars by July (He wanted to get back his money he lost in Cicso (~$3000)).

What was his initial investment?

I don't remember. I will ask him tomorrow. I believe it may have been around $1000.

Assuming your friend invested his $1000 dollars when Microsoft stock was at its March low of ~22.50 and then sold it when it was at its July high of ~27.75, his original investment would have turned into $1230.60. In order to make $4000 over the same period he would have had to invest ~$17000, not $1000.

not that I believe transition and his claim of a $1000 investment, but there is no reason why you couldn't make $3000 on $1000 through buying options or futures on MSFT back in march. Also, there is no reason why he couldn't have bought on margin. Again, I don't believe the original cliam, but it is possible.

 

[FeathersMcGraw]

Originally posted by: DaveSimmons

You should never buy a stock just because you like the product, without understanding its business model and long-term prospects.

The perhaps unobvious corollary to the above is "you shouldn't buy a stock because someone on the Internet told you to".

 

[The Sauce]

Low risk investments.

 

[StageLeft]

Don't do individual stocks. Put it into a mutual fund or index fund if you can tolerate some risk and it's a long term investment. If you want something returned within a year drop it in some crap like a bond or ING direct account and cry over a 2% guaranteed return.

 

[fonzinator]

What does "quick" mean? 1 month, 6, 1 year? What does "$$$" mean? What kind of a return do you realistically expect? 5%, 10, 20, etc? Is this 5K your life savings?

 

[Lonyo]

Find someone who might be getting a takeover bid, and invest in it.

Highest performing UK stock went up 24% from a takeover. You'd have to be very shrewd though, and very on the ball to find signs of mergers/takeovers.

BAT (British American Tobacco) went up 10+% today on the back of a merger.

The other option is penny shares, very volatile, but if you get it right you can get a fair return, if you get it wrong though, you get screwed.

Example: Leeds United football club: day low of 2.75, days high of 3.5, that's a 27% rise in one day, if you can buy and sell at the right times.

It's possible, but very risky and very difficult to make quick money with stocks.

 

[Banana]

US Treasury bonds--Safe and tax free, but low yield, so it doesn't quite fit your desire for a fast buck.
But just in case you want to play it safe, you can buy them straight from the US gov't! Go here.