long term investing

long term investing questions and answers

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Q: what's the difference between speculative investing and long term, and how do you tell the difference?
Hi all, I was looking at investing in some geothermal companies, however I'm told this is speculative. What is the difference between this speculative type buying and long term investing? cheers ok, so speculations has nothing to do with whether a company is established well or not? Also can someone tell me how a companies 'blue chipness' has anything to do with whether it is high risk or not?

A: There are two differences: the time scale and the way of selecting the stocks. A speculator tries to make his profits on a short time scale, from intraday to at most a few weeks. He plays the market long and short, often with leverage. He doesn't really care about the fundamentals of the stock, he is interested in violent moves. An investor buys a stock by looking at the fundamentals and is in a trade for a few years. He looks for value or growth. Value stocks are those with good fundamentals, but beaten down and at present undervalued. The investor buys them and waits until they become in favor again. Growth stocks are stocks on the way up, expanding businesses selling something new, like a new technology. They still have to prove themselves, and the big idea can turn out to be a dud. Taken on their own such stocks are speculative bets: you either win big or you loose. But a diversified portfolio of say, 20 of such stocks is a good investment, IMO. Sure some will be duds, but two or three big winners will compensate for that. As for you geothermal stocks, they fall in the growth category. So it's an investment, but only when included in a diversified portfolio. Blue chips are typical well established companies. A big part of their risk is market risk, but intrinsically they are less risky: it's not very probable they will go belly up (although these days one never knows).

Q: Long term investing for a future child?
I am a 21 yr old male and I want to start some really long term investing for my future kids.... yeah it may seem kinda weird or stupid right now.... but hey... I am more mature than a majority of the boys my age. What kinds of options should I look at? I will be putting in a very small amount each month to whatever it will be because I am starting some other investment ventures as well for myself. Thank you!

A: I would suggest investing the maximum for your own retirement now. Later, after your child is born, you can invest less in your own retirement and more for him/her in a college savings plan such as a 529 plan. You can read about these at: http://www.savingforcollege.com If you insist on saving for an unborn child you can open a 529 plan with yourself as the beneficiary. When the child is born, you change him to the beneficiary.

Q: When long-term investing how do you find date acquired and cost for taxes?
I have had this fund since 1995 and liquidated it this year. I do not know how to file my taxes with just a 1099-B. They ask me to put in the date and cost. But I purchased many amounts over many years. Please help me out. it is a mutual fund

A: if you purchased different shares of the same stock at different times and cannot identify which stock you sold you would use the basis of the first shares purchased. For instance - you purchased 50 shares at 65.00 and later purchased an additional 30 shares at 50.00. If you sold 70 shares your basis would be 65.00 plus sales commission for the first 50 shares and 50.00 plus sales commission for the additional 20 shares you sold. You would write various where it ask for the date acquired. You cannot do this with mutual funds

Q: In stock market, what's the definition and difference between short term and long term investing?
As my question indicates, I am a beginner and am trying to get familiar with these finance terminologies. If you an expert in this zone (or at least have some experience), any advice, tips, recommendation ,... would be greatly appreciated.

A: It depends on individual goal and needs. Short term: from days to weeks Long term: from months to years

Q: Best method of long term investing?
Gained money that i dont have use for right now what is the best method for investing long term- long term such as 10 years.

A: Yes. Plus make sure that is is spread across asset classes - US stocks, international stocks, total bond market index, and commodities. (To illustrate why, the S&P 500 Index is presently where it was 10 years ago.)

Q: Any good stock tip on the canadian market short term and long term investing?
If we look at GE on New York it has appreciated by 12 times over 12 yrs with very little risk. I wonder if Canada has such growth company without risk as I have been burnt by many that do exist today.

A: go to financial advisor.. they r gud at it..

Q: Which real esate markets are best for long term investing?
I plan to buy and hold and use a property management company.

A: Some investors would agree that the midwest is goodfor long term hold. The reason: it's steady. If you have enough knowledge to invest in some of the more risky areas (Coastal, etc) then do so. If not, Texas and the midwest have historically held their value, not been subject to the "real estate bubbles" and have rented solidly with some appreciation.

Q: Is buying the S&P 500 with the 10/40 or 10/44 weekly SMA a good long term investing formula?


A: about equal to investing in roulette using the martingale.

Q: which are the top 5 mutual funds for medium to long term investing?
funds that will give me the maximum capital gains over the next 10 - 15 years

A: Well to suggest on funds...or any other investment avenue its very essential for any investment planner to know few things about u.. like how much can u invest...how long can u invest... what kinda returns do u expect outta yr investment how much risk can u take for that investment whats yr income......how much can u save outta it... yr net tax filings... yr family details like ..dependents on u...yr age... once if u can answer these question it wold be easy for anyone to suggest few things... even if i tell u about a thing ..it might not be appropriate to u.... and i dont wanna do that... remember one thing all the investment look good in a raising economy and bullish markets.. so it is essential for an individual to look at his investment objective to come to a decision for investment... hope u understood what i said... i wish u good luck.. Happy investing....!!!!!!!!!

Q: Companies you would consider investing long term and why?
Companies that are labeled for "growth" and also pay good dividends. Simply put, companies that can anchor your retirement fund for like 40+ years.

A: Some of the companies/industries suggest, I would only invest in if the stock fell to a cheaper level, but here they are: Oil companies paying dividends. (there are plenty to choose from) Microsoft (it owns the computer OS market) and is expanding into other electronics and online ventures. It has plenty of money, no debt and may give out more dividends in the future. Yahoo/Google own internet world. They might be a bit expensive at the moment. Solar companies that have sales (not the ones that have no sales at all) and are cheap, because solar is a growing market of the future. Gold/Silver companies (SLW and G). Uranium mining companies (nuclear power is clean and affordable, many nuclear plants are being built around the world, and not many minning companies around, supply is tight! = perfect conditions for rising prices). And of course a few REIT's (real estate investment trusts) when they are cheap, wait for a downturn and the stock will plumet then buy some shares. Technology that is here to stay and become more prominent. Solar power, nanotechnology, GPS (Garmin GRM), etc. General Electric. Berkshire Hathaway. Coca Cola & Pepsi. ETC. There are way more. But any of these are only good investments at cheap prices. Just because they are all great companies doesn't mean they are great investments. The price must be right too! Read up on Warren Buffett's strategy and holdings. He is the richest self made investor in the world. It should give you some framework to work with and some good reasons why it has worked well for Mr. Buffett.

Q: TRADING VS. INVESTING - What is more profitable on long term, trading or investing.?
In theory trading is more profitable because more potential profits can be made but on the other hand it allows to make many mistakes compounding to a poor return. What is your opintion is trading or investing on long term more profitable?

A: I am mostly an investor and I am quite satisfied with my profit. I absolutely hate paying tax to the government which causes me to shy away from trading. One more thing, if you should be so unlucky to trade a stock in hudge upswing, that might very well cure you forever. Those who traded MSFT right after the IPO know exactly what I am talking about.

Q: what is the difference between short term and long term investing?


A: Short term investing focuses on making a quick return or getting a high amount of current income. Long term investing counts on the fact that over time a worthwhile investment (stocks, real estate, whatever) will appreciate in value, resulting in a long term capital gain.

Q: What are some good value stocks for long term investing (as opposed to growth stocks)?
Berkshire Hathaway (BRK.B)? Hewlett-Packard(HPQ)? Nucor(NUE)? Northrop Grumman(NOC)? Hess(HES)?

A: Drug companies like Pfizer (PFE) are trading at historic lows. The dividend yield on PFE is over 6%. But keep in mind all the rhetoric being espoused by Hillary and Obama. They always speak of those nasty drug companies and nasty oil companies. The election of either could drive prices down even more.

Q: What are the best alternative fuel stocks for long term investing? Obviously opinions but they all count.?


A: Your heart is in the right place. Companies need to profit before investing in them is worthwhile. It's almost impossible to know what's going to happen even 12 months in the future. This will be a competitive and constantly changing market for many years. Having said all that. It would seem that Toyota and Honda may benefit from these changes. It appears they are doing a better job than GM or Ford. Smaller companies providing components or technology will be feast or famine. It would seem there will be some big winners, many technologies just won't make it in the long run.

Q: What's a good method for picking stocks for long term investing?
I don't want to be a day trader. I don't want to buy securities with the expectation of selling them a month or 2 later. I'm seeking 15% annual returns over 5 to 10 years. Is that unreasonable? What online brokerage is best? And what's the best research site out there? I like Yahoo Finance. I also like Morningstar. I also really like TheStreet.com

A: The Intelligent Investor by Ben Graham can help with your financial education.