what to invest with 10k

[ER_Hopeful]

Have always been an index fund investor for the past 10, 12 years, now I have about $10k of "fun money" that I'm willing to risk. I'm very new to stock research, any individual stock, eft suggestions? screening tools? list of strategies? Sorry for the broad question, just trying to get started. thanks.

[pb4uski]

How about BRK.B?

[HadEnuff]

What are you hoping to accomplish with this money? Hit a home run? Or just a steady diet of singles and doubles?
Is there any chance you will need to liquidate the investment in a hurry?

Is this in an after-tax account, or tax sheltered vehicle?

If after-tax, how will capital gains and/or dividends-interest be impacted by taxes?

[ER_Hopeful]

Quote:

Originally Posted by HadEnuff What are you hoping to accomplish with this money? Hit a home run? Or just a steady diet of singles and doubles? Is there any chance you will need to liquidate the investment in a hurry? Is this in an after-tax account, or tax sheltered vehicle? If after-tax, how will capital gains and/or dividends-interest be impacted by taxes?

definitely looking for a home run. My investment growth has been steady for the past 12 years but very slow. Looking for a big payback with this mad money. I can put it in an IRA account.

[COcheesehead]

Look at the most under performing sector in the market over the last year and buy an ETF that tracks it.

[Totoro]

You want a home run?

Try and find the common denominator here:
Stocks - Performance | 10-Year Leaders

Medicine and technology basically, with a few odd ones out (guns, credit cards).

Prepare to lose your entire outlay though.

[ownyourfuture]

I'd invest half in Amazon, & half in Google.

[Tortoise]

Hitting a home run in the stock market with fun money in the short term is certainly possible, but striking out is more probable. This kind of investing is called gambling. I'd rather use my fun money to go to Las Vegas, do some sightseeing, see some shows, and gamble.

[COcheesehead]

Quote:

Originally Posted by ownyourfuture I'd invest half in Amazon, & half in Google.

The P/E on Amazon is 187
The P/E on Alphabet (the old Google) is 29.

What happened to the sage advice of buy low, sell high?

[Travelwanted]

No offense but there is no "home run" in investing. Chasing a hot tech stock is gambling, not investing. I'd rather take the money and put it towards an amazing vacation than chase a stock that may drop 50%. Or take your money to Vegas and see what happens.

I like to "invest" in a tech stock when it misses earnings but has strong fundamentals...eg. AAPL, GOOG. I bought GOOG back about two years ago at 524 on bad news. It's about 775 now I think.

[COcheesehead]

Quote:

Originally Posted by Travelwanted No offense but there is no "home run" in investing. Chasing a hot tech stock is gambling, not investing. I'd rather take the money and put it towards an amazing vacation than chase a stock that may drop 50%. Or take your money to Vegas and see what happens. I like to "invest" in a tech stock when it misses earnings but has strong fundamentals...eg. AAPL, GOOG. I bought GOOG back about two years ago at 524 on bad news. It's about 775 now I think.

^^^^THIS^^^^

[HF63]

Look at the charts what will you consider a good buy at this lofty levels

Put the money under a pillow, pull it out after the fed get interest rates in 3-4% range and there will be plenty of stuff to buy when this happens.

[Mulligan]

Maybe I am wrong here, but if I was trying to hit a home run and essentially gamble, I would do it in a taxable account. I didnt invest as much in tax free space as I should have so I hold that money precious and invest it in a likewise manner. If you strike out swinging for the fences at least you can write it off on your taxes.


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[COcheesehead]

Quote:

Originally Posted by HF63 Look at the charts what will you consider a good buy at this lofty levels

Whole Foods. Just got a beat down.

[Closet_Gamer]

All the sage (and correct) advice about investing vs. gambling nothwithstanding, perhaps looks into options? If you're looking for high volatility, that is a place you can really move the needle (up or down). I'm not an option investor but there is a strategy of buying options near make or break events for a company. Buy out of the money calls on a biotech that us about to get the big FDA thumbs up or down. If they get it, you're invest wins big. If not, you get zero.

And for goodness sake, do not bet precious tax deferred money on this.

[clobber]

Quote:

Originally Posted by Tortoise Hitting a home run in the stock market with fun money in the short term is certainly possible, but striking out is more probable. This kind of investing is called gambling. I'd rather use my fun money to go to Las Vegas, do some sightseeing, see some shows, and gamble.

This makes no sense at all. "Hey dude, gambling in the stock market is BAD. Gambling in Vegas is better!"

I suggest finding a company you like, doing some research. Pick one company and go for it. Sure - decent chance of losing the money, but with the research I would say reasonable chance of home run.

Go to Vegas you lose for sure!

[dvalley]

I too have been overweighted in my cash position but with the way market is right now I don't see a lot of options; either index investing, spend the money (toy, vacation etc) or wait until a dip (like the Brexit). I'm hoping to do the latter.

[Running_Man]

Quote:

Originally Posted by ER_Hopeful Have always been an index fund investor for the past 10, 12 years, now I have about $10k of "fun money" that I'm willing to risk. I'm very new to stock research, any individual stock, eft suggestions? screening tools? list of strategies? Sorry for the broad question, just trying to get started. thanks.

I will take this as “fun money” in that you are willing to invest in individual stock ideas that you think hold merit for long term prosperity. I would suggest you review the world economy and what industries/ business types will flourish over the next five years. If you believe for instance that incomes will continue to grow and interest in the world is expanding then perhaps investments in the travel industry. If you feel that the world is becoming a more dangerous place and wars may be breaking our then perhaps the defense or home security industry. In that way you will be invested in the way you see the world adapting. But always keep a look out for the secondary investments - if for instance you see a big increase coming for agriculture as demand for food skyrockets then perhaps an investment in Potash or agriculture machinery business may be the way to invest.

[DrRoy]

Quote:

Look at the most under performing sector in the market over the last year and buy an ETF that tracks it.

Quote:

Try and find the common denominator here: Stocks - Performance | 10-Year Leaders Medicine and technology basically, with a few odd ones out (guns, credit cards).

Did you notice that these two are in opposition to each other?

Quote:

Hitting a home run in the stock market with fun money in the short term is certainly possible, but striking out is more probable. This kind of investing is called gambling. I'd rather use my fun money to go to Las Vegas, do some sightseeing, see some shows, and gamble.

+1 Over 35 years I have tried a lot of things, and am now just an index investor, which is your main position. I would still put most of it there. If you want to take a flier on something, you might look in the commodity space, like gold or oil, which are just showing signs of coming out of long bear markets. Or just do something fun.

Quote:

If I was trying to hit a home run and essentially gamble, I would do it in a taxable account. If you strike out swinging for the fences at least you can write it off on your taxes.

+1 on this also.

[COcheesehead]

Quote:

Originally Posted by DrRoy Did you notice that these two are in opposition to each other?

LOL. One reflects value investing and the other growth style. You need
some of both.