What do you invest in?

I have about 5K that I want to invest. Where do you think I'll get the best return?

I don't need a quick return I just want to invest it wisely.
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ro6otAsked:
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Rob HutchinsonTech Lead, Desktop SupportCommented:
Here's a good website to learn more about investing money.
http://www.investors.com

Think you are best to spend some time on learning about investing rather than take any one person's advice although, I wouldn't be working today if I had spent the $5k on Dell stock instead of buying computer equiptment the summer of 1988 which was the summer Dell just changed their name from PC's Limited to Dell.

This is an good example of 20-20 hindsight vision though.
ro6otAuthor Commented:
I hear you. I had stock in Nortel pre-2001 LOL..
Thought the life was great until the shares fell from $80 to under $2.

I was just looking to see what people here think are hot companies or hot commodities in today's market.
Nancy McCulloughCommented:
Commodities - very very very risky. Oil is at a high and will come down at some point. Tech is getting better and better - but will burst the same as anything else. HIGH RISK

Bonds - almost too safe. They don't give back quick enough - though a necessary in any portfolio. LOW RISK

Real estate - Slow moving, but you can still get it cheap in the US. Find something undervalued, buy and hold.

My choice of stock is JNJ. It is always a reliable stock and is at a reasonable low right now.

A reasonably good rule of thumb: Spread your risk like peanut butter between high, medium and low risk.

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nickg5Commented:
take a look at LYSDY
Lynas

rare earth company who is already producing the goods, unlike Molycorp.

I bought some Lynas back on the 15th for $15.80 and sold a week later for over $20.50. There is more than one symbol. The one I gave you is for the ADR and it is 10 shares.

The current price is $22.35 but that is 10 shares. Actual the stock price is $2.23 and is a penny stock. It would be a good long term hold.

I may never get to buy it again under $1.60, but if I do, I'll buy more.

The math was tricky, I bought 300 of the ADR's so I was really buying 3000 of the stock. I made almost $1500 in a week and % wise that was about 32%.
That is a nice gain over 3 years, at 10.66% per year.

Lynas is a buy under $1.80, and a strong buy under $1.60, pending the reason why it has fallen to those levels from it's current level. The difference between buy and strong buy is:
buy, you walk to your broker.
strong buy, you RUN to your broker.

If you have a margin account you could put $5000 in a stock that will be taken over or bought out.
Examples of stocks waiting on "events" are:
1. Dell Computer. Michael Dell is rumored to want to take it private.
2. Seagate. Rumors of a takeover. Good value without a deal.
3. Humane Genome Sciences, will be taken over.
4. Big Lots, buyout expected over the next 60 days at a price north of $50. Currently $43.50 so there is 12.5% or more, in a month or two.

Lot of news stories to verify these "event" stocks.

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silverkornCommented:
First off it is against the law to advise other people to buy certain stocks if you currently own any shares.

unless you are willing to do a LOT of research and want to take the risk of the stock market I would suggest to stay away from it. Only invest what you are willing to lose 100% of.

with that said i think the better investment is either real estate or mutual funds. The real estate market is at a low point right now but it is unsure how long it will take for the market to come back to make your money back. Mutual funds you are getting the benefit of investing in the stock market but are paying to have someone else do the investigation and research, good mutual funds can provide a return even in a down market.
nickg5Commented:
I've never owned real estate or mutual funds.
Some of the fund managers, turn over their stocks alot and you never really know which stocks are in the fund.

I could never recommend funds to anyone.
silverkornCommented:
thats why you need to find a valuable mutual fund, if you throw your money into either a stock or fund that is given no research your just throwing it away.

$6,000 back in 1990 could have got 1 share of Berkshire Hathaway which is trading at $128,000 right now
Nancy McCulloughCommented:
I agree with Solverkorn that it is important to not seek the advice of those who own specific stocks. This said, I will let it be known that I do not currently hold JNJ - just that I will be considering the purchase for myself after having done the analysis.

It is also important to know the qualifications of those with whom you consult. I am not an expert in stocks per se, but I do have an MBA, a lengthy history in the financial sector, and run a business involving regular financial recommendations.

We have all had the fortune and mishap of selling too early, holding too long, or missing altogether. It is most important to do your homework, research the company, research the market, and research the trend. Don't ever negate the numbers. Hire an expert to do analysis of the financial figures of anything that you may be interested in.
nickg5Commented:
Someone investing $5000 in some stock, I personally own will in no way affect the stock price of what I own.
I was pointing out to the asker, interesting stocks that could fit in their price range.
All the news and rumors about those companies, are quite known and has been public for weeks or months.

JNJ is a drug company and I only know tech stocks, and a small number of companies in other industries.
The time horizon is important too.

JNJ would be classified like some large growth companies, their stock price moves slower than drying paint.
So, it all depends on how long the buyer wants to hold and hold.
ro6otAuthor Commented:
Thanks everyone.. All of you pointed out good tips for me use.

FYI.. I asked this question on experts-exchange because I wanted to see what you all are investing in and what you're opinions are. I'm not going to invest in a stock or specific product based on one person's perspective. I'm doing research and I value this community's opinion.
Nancy McCulloughCommented:
Here is some more information on Johnson & Johnson (JNJ) stock: http://www.investor.jnj.com/stock-information.cfm
ro6otAuthor Commented:
LOL.. My wife suggests I invest in a new front loader washer/dryer
silverkornCommented:
happy wife, happy life
nickg5Commented:
There are people who think silver will triple in the coming years.
And copper may double when Japan beings their re-build.
Look into commodoties and precious metals.
Lynas is into rare earth metals.
nickg5Commented:
well, I did "forget" to mention National Semiconductor. They got a takeover bid today and the stock went up 70%. I was going to mention that one to you but........

what kind of investor are you?

your age can be a factor.

my father was a buy and hold. He bought IBM around $100 and 10 years later it was near $100. He had the chance to sell many times over $120 but refused.

You can not fall in love with a stock or a company. Pick a place to buy and a place to sell.

So, buy and hold does not work in many cases. Just look at Microsoft, dead money for years, but very "trade-able."
silverkornCommented:
i just checked my portfolio this morning to see what my average gain has been, and in the last 2 years i have averaged a 20% gain with only using 6 mutual funds. granted they are listed as a high growth fund, which comes with higher risk but for a "down" market 20% return is nothing to bark about.
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