How would you invest $50,000?

[Zathras]

Yes, diversification is very important.
The question was 'how would you invest $50,000'.
I have about 22 individual stocks and KFT and SYY are next up on my list of stocks to increase the number of shares I have (I buy 2 at a time so I don't end up paying more in commissions).

 

[NW-Bound]

Excellent! Your clarification would help new investors who stumble across this thread.

I myself have more than 100 positions. I am chicken, so usually do not have more than 5% of portfolio in any single position. That has forced selling some "high-octane" stocks before it's time. I've got to learn to ride them a bit longer.

 

[Zathras]

Very good point, I wouldn't want anyone to be confused that was my overall position.
That is a lot of positions, but the most important thing is your own comfort level.
If you don't need to hit the jackpot to support your retirement, no need to take additional risk.
I like the 5% idea. Most of my stocks are below %5 although some are closer to 10%.

 

[NW-Bound]

That is a lot of positions, but the most important thing is your own comfort level. If you don't need to hit the jackpot to support your retirement, no need to take additional risk.

That is still less than the number of positions that most mutual funds hold, and I fancy being my own MF manager. Finding a sector that I like, I would sprinkle money among a few leading companies in that sector to play it safe.

My risks can still be high as I often get carried away and have too much in one sector. In 2000, I got hurt bad with telecoms and semiconductors.

Nowaways, it is much better to use an ETF to play sector rotations, but old habits die hard. But I also like to "race" different companies in the same sector, and after the fact, try to understand how and why one fails compared to another.

It's a pastime as well as anything else.

 

[Frugality_of_Apathy]

5,000,000 shares of penny stocks.

 

[NW-Bound]

If it goes to two cents, you've doubled your money!

Wait! Stocks now trade in fractions of a penny, don't they?

 

[Kabekew]

No question, invest in your own business. You're young and single, and now is the time to go all out. If it fails, you just go back to your high paying job and delay retirement a couple more years. But if it succeeds, you get to retire that much sooner and that much richer.

 

[CuppaJoe]

Bank5, that the "$64,000 question." I'll take two aspirin and call you in the morning.

 

[Mill]

Assuming 0 assets, 0 debt

5k Roth IRA 2009 with another 5k ready for Jan 2010. all in Vanguard total market index
10k cash emergency fund
5k bonds or TIPS
15k taxable investment account in a low cost index fund (or split between 3 or 4 index funds)
5k gold and/or silver boullions. not the ETF's.
4k oil ETF's (USO, USL)
1k pink sheet mad money

 

[justavet]

How to invest $50.000

Put it in a guaranteed annuity that NEVER sees the initial amount go down,even in terrible markets the amount will not decrease only thing is you only make 5% each month off of the original amount except if on your anniversary date you have more then the original amount then the 5% is in the higher amount and the guarantee switches to the higher amount, then at the end of your 86 year they cut you a check for the highest amount the was in the account and give it to you. Ill sure hate to have to pay the taxes on it though.It might not be so bad I'm sure Ill be in a lower tax bracket .Oh I forgot even if the account goes to zero you still get 5% of the highest amount acheived in your account for life.