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Cat asked in Business & FinanceInvesting · 2 decades ago

What are the 5 best stocks to buy into???

In my economics class we have to "buy" 5 stocks, but I don't really know anything about stocks. So what are the 5 best stocks out there right now?

6 Answers

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  • OPM
    Lv 7
    2 decades ago
    Favorite Answer

    First, I am among the best investors globally. My return for the prior five years has been 21% while materially taking less risk than the average risk in the market. To substantiate this, I also play a stock market game that tracks my return, although it is is a link to a simulation not to my real accounts. See link: http://www.marketocracy.com/cgi-bin/WebObjects/Por...

    I have also produced an academic paper on the equities markets proving that the assumptions of the Capital Asset Pricing Model and the Black-Scholes Option Pricing Model do not occur in nature. Both are central theories of modern finance. Both are also always invalid to use.

    So now that you have my qualifications, let me begin to answer your question.

    First, ignore all of the above posts from others. They mean well, but neither they nor I know you.

    Second, the answer is subjective against your personal goals. Without knowing your goals, no one can answer these questions. I no longer provide professional investment advice for a living, but if in the future you need advice I would recommend visiting Edward Jones. They are good stock brokers. You will not get the "best" return, but you are likely to reach your personal goals. Since most people really want to reach their goals, that is more than sufficient.

    Second, you cannot invest in something you do not understand. It isn't investing, it is gambling.

    When you purchase stocks, you are buying an ownership interest in a business. If for example, you purchased 1 share of a public utility with 1,000,000 shares, you would be the owner of one one-millionth of everything that the firm owns or earns. You are only entitled to receive it when your elected agents, the company's board of directors, authorize it.

    I would strongly recommend reading:

    "The Intelligent Investor," by Benjamin Graham.

    Also, there are a number of investing books for new investors out there. I personally find that the "Dummies" series is usually pretty good. If you can take a personal finance class and an accounting class you will also be much better off. I would also suggest reading wikipedia. It has a number of decent articles. (see http://en.wikipedia.org/wiki/List_of_finance_topic... )

    For the purposes of satisfying a professor, the best five stocks will be the five stocks you can justify owning. That means you will need to research the companies directly yourself. The justification needs to be against whatever goals you are trying to accomplish. The reason there does not exist five "best stocks," is that there exist multiple "best" lists depending upon your needs.

    Bank of America, for example, could be in your list for some goals, but not for others. Seaboard, could be in your list for some goals as well, but not others. For example, they kill pigs by electrocution. If that bothers you ethically, then it is outside your universe, if it doesn't then depending upon other personal constraints it may or may not fit your investing needs.

    You need five stocks that you can justify from the basis of your subjective needs. This includes ethical and emotional needs as well as financial.

  • ?
    Lv 4
    4 years ago

    there are a number of shares in small agencies that are under $5 in line with share. As a beginner investor, you need to be considering the flexibility cost of the inventory you purchase, no longer that it is "low priced" at the instant. in case you have $two hundred to take a place, you will get 40 shares of a $5.00 inventory, however the inventory won't have long-term boost ability. Take the comparable $two hundred, and you ought to purchase 10 shares of a $20 inventory, one which you're feeling has greater useful boost ability. sturdy success.

  • 2 decades ago

    No budget limit? No prefrence of type....

    Here's my top 5 tech stocks:

    Applied Materials

    Cisco Systems

    Intel Corporation

    Microsoft Software

    Oracle Systems

    James

    http://www.thesmartass.info/

  • 2 decades ago

    The internet companies are what's hot right now. Google and yahoo are on fire. I'd also say Sun Microsystems, Apple *the ipod is really popular* and SBC/ATT. They are expanding rapidly.

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  • cran
    Lv 4
    2 decades ago

    Here my best 5:

    GILD - Gilead Sciences

    WFMI - Whole Foods Market

    ADBE - Adobe

    CMED - China Medical

    GOOG - Google

  • 2 decades ago

    GM - General Motors

    T - AT&T

    MRK - Merck

    VZ - Verizon

    PFE - Pfizer

    For extra credit, tell your teacher you are selecting the "Dogs of the Dow".

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