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Old 12-25-2013, 01:54 PM
 
Location: New York
757 posts, read 986,123 times
Reputation: 325

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I haven't invested in anything yet, but I'm doing some brief research on a few I may like. I would like some feedback on my choices, and feel free to suggest something you might feel is better.

Mutual Funds:

MFMIX
MFMPX
VWNFX
AMRMX
POAGX

ETFs:

SDY

Stocks:

SODA
TIVO
URBN
WEN
NDLS
HLT
FB
TWT
DAL
TMUS
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Old 12-25-2013, 05:52 PM
 
Location: US
22,389 posts, read 21,233,907 times
Reputation: 17544
I'm glad you chose Scottrade, good choice for a beginner!

Before I give my two cents on the stocks and ETF you listed, what is your time frame?

My opinion will differ depending on if you only want to hold each stock for 1 month or less, 6 months or less, 1 year or more etc.

I personally do not like mutual funds, so I won't give my opinion on them because I simply do not like them. I stick with ETFs if I want a diversified position.
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Old 12-25-2013, 06:58 PM
 
Location: New York
757 posts, read 986,123 times
Reputation: 325
Quote:
Originally Posted by bmw335xi View Post
I'm glad you chose Scottrade, good choice for a beginner!

Before I give my two cents on the stocks and ETF you listed, what is your time frame?

My opinion will differ depending on if you only want to hold each stock for 1 month or less, 6 months or less, 1 year or more etc.

I personally do not like mutual funds, so I won't give my opinion on them because I simply do not like them. I stick with ETFs if I want a diversified position.
I'm leaning towards a year or more for my time frame.

What don't you like about mutual funds, what makes you prefer ETFs more?
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Old 12-25-2013, 08:52 PM
 
2,563 posts, read 3,103,669 times
Reputation: 3511
For what it's worth, and in my experience, the big money is made in the stock market over the long-term. For example, I can look at stocks today that I used to own 30 years ago, and some of them are up 30 40 or 50 times. I wish I had a Wayback Machine so cold put them back in my account.
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Old 12-25-2013, 11:46 PM
 
Location: US
22,389 posts, read 21,233,907 times
Reputation: 17544
Quote:
Originally Posted by Jonathanp219 View Post
I'm leaning towards a year or more for my time frame.

What don't you like about mutual funds, what makes you prefer ETFs more?
ETFs trade like stocks, which I like.

ETFs trade throughout the trading day, like a stocks, while mutual funds trade only at the end of the day at the net asset value (NAV) price. Most ETFs track to a particular index and therefore have lower operating expenses than actively invested mutual funds. Thus, ETFs improve your rate of return on investments. In addition, ETFs have no investment minimums or sales loads, unlike traditional mutual funds, which have both. However, most indexed mutual funds will not have sales loads.

ETFs create and redeem shares with in-kind transactions that are not considered sales. Thus, taxable events are not triggered. Redemptions create tax events in mutual funds, but they do not create tax events in ETFs. When a forced sale of stock occurs, mutual funds record and distribute higher levels of capital gains than ETFs. In addition, ETFs have greater tax efficiency due to a structure that allows them to substantially decrease or avoid capital gains distributions altogether. This difference can greatly affect the overall rate of return, even if an ETF and mutual fund both track the identical index.
(Investopedia)

Short-term -> Technicals
Mid-term -> Technicals & Fundamentals
Long-term -> Fundamentals

I would go with a diversified approach portfolio. You should get TOP LEADERS in different industries as well different TYPES of stocks.

For example, have a couple tech names, look for the best of breed such as Google and Apple. Look for a couple retail names, such as Costco and Amazon. Now look at different types of stocks such as high growth stocks, high yielding dividend stocks, speculative stocks etc. Amazon is a good example of a high growth stock. AT&T is a good example of a high yielding dividend stock. Tesla is a good example of a speculative stock. You not only want your portfolio to have stocks in different industries, but you also want them to vary in risk/reward.

Another way to go would to buy a few ETFs such as SPY (basically matches the S&P 500), DIA (basically matches the Dow), QQQ (basically matches the Nasdaq-100). You could split your money three ways between these three or you could add some more... such as IBB (contains the big biotech/pharm companies). There are ETFs for many things.
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Old 12-26-2013, 10:24 AM
 
11,758 posts, read 16,497,253 times
Reputation: 6008
Quote:
Originally Posted by Jonathanp219 View Post
Mutual Funds:
ETFs:
Stocks:
TIVO
I am long Tivo call options. I think Comcast or other company should be able to use Tivo technology as well as their customer base. I've hoped that Apple would buy them for their Apple TV. Easy takeover for someone with deep pockets. At $13 the market cap is 1.58B. Add a premium of 30% and takeover for $2.06B = $16.90 stock. Alone, I'm not sure they can make it long term by themselves.
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Old 12-26-2013, 09:37 PM
 
28,742 posts, read 31,407,590 times
Reputation: 29880
Quote:
Originally Posted by Jonathanp219 View Post
I'm leaning towards a year or more for my time frame.
A year is generally way, way, way too short.

If you are a newbie, I don't recommend individual stocks at all. If you must, invest only "play money" in individual stocks...That means a small amount of money AFTER you've got a 6 month emergency fund, debt paid off, and are maxing out your 401K and IRA (23k PER YEAR). Then, maybe you can consider individual stocks.

Last edited by mysticaltyger; 12-26-2013 at 10:30 PM..
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Old 12-26-2013, 09:59 PM
 
28,742 posts, read 31,407,590 times
Reputation: 29880
Quote:
Originally Posted by Jonathanp219 View Post
I haven't invested in anything yet, but I'm doing some brief research on a few I may like. I would like some feedback on my choices, and feel free to suggest something you might feel is better.

Mutual Funds:

MFMIX
MFMPX
VWNFX
AMRMX
POAGX
I am not really into individual stocks & ETFs. But I am a mutual fund junkie, so here goes:

MFMIX / MFMPX---1.85% Expense ratio. That alone makes it not even worth considering. But to make matters worse, this is a VERY volatile category. I just wouldn't invest in "frontier markets" at all unless we're talking play money (see definition of that in my previous post). MFMPX charges a sales charge and an ongoing 2.1% expense ratio for the same fund. Horrible choice. A better alternative would be DODFX. It will buy some emerging markets stocks when it thinks they're selling at good prices...but they probably aren't going to invest in too many "frontier" markets. A solid international fund like DODFX is volatile enough.

VWNFX: A decent choice. However, I would say VDIGX or VPEIX are better. VDIGX used to be a utility fund, so you can't compare the fund's performance to other funds beyond the 10 year mark.

AMRMX: This would be a good choice IF you could avoid the sales charge. Since I don't think that's the case, then forget it. It's not worth it if you have to pay that fat sales charge. I can think of lots of better alternatives to this fund that are in the "large company value" category and none of these charge fat sales charges and their performance is as good or better: DODGX, VPEIX, VDIGX, PRBLX, PRFDX. PRBLX is not really large value, but it does pay attention to dividends and is not particularly volatile. Like AMRMX, PRBLX will build up cash when the managers deem it necessary.

POAGX: This is a solid fund in the mid cap growth category and it has low expenses (good!)...but it IS aggressive. I wouldn't make it more than 10 or 15% of my portfolio. Mid cap and small cap stocks are somewhat expensive right now and like I said, this is a volatile category.

SDY: This just tracks the S&P 500 Index. Nothing wrong with it. But if they charge you a transaction fee for buying & selling, it's not worth it. Just buy the mutual fund version, VFINX. Personally, I don't think it's that hard to pick funds that beat the S&P 500 as long as you pick a fund with low expenses such as VWNFX or some of the ones I suggested...but no one can predict the future.

Last edited by mysticaltyger; 12-26-2013 at 10:33 PM..
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Old 12-26-2013, 10:01 PM
 
28,742 posts, read 31,407,590 times
Reputation: 29880
Quote:
Originally Posted by John7777 View Post
For what it's worth, and in my experience, the big money is made in the stock market over the long-term. For example, I can look at stocks today that I used to own 30 years ago, and some of them are up 30 40 or 50 times. I wish I had a Wayback Machine so cold put them back in my account.
Exactly.
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Old 12-26-2013, 11:27 PM
 
Location: All Over
4,004 posts, read 5,115,692 times
Reputation: 3123
Quote:
Originally Posted by Jonathanp219 View Post
I haven't invested in anything yet, but I'm doing some brief research on a few I may like. I would like some feedback on my choices, and feel free to suggest something you might feel is better.

Mutual Funds:

MFMIX
MFMPX
VWNFX
AMRMX
POAGX

ETFs:

SDY

Stocks:

SODA
TIVO
URBN
WEN
NDLS
HLT
FB
TWT
DAL
TMUS
i dont really like your stock pics, some like facebook and twitter are at highs i wouldn't buy in where theyr at. sodastream im shocked by their price tahts a total niche fad and too hi priced.
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