stocks

Re: stocks

• vlagrl29 member

  

  June 2013

  I have a few individual stocks I invest in.  I just chose companies I believed in and that had a track record of doing well.  If you don't want to deal with that, then I would suggest focusing on mutual funds with stocks in them.

  
  

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• ta78 member

  

  June 2013

  Do you use an online broker like e.trade or similar?
  

  

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• CuriousKiddosMama mod

  

  June 2013

  My husband has bought a couple stocks on his own every now and then. They will be companies he believes in who he thinks are undervalued in the long term. He just goes through his brokerage account on Wells Fargo. I personally think buying an individual stock can be pretty risky, but they are generally stocks he feels like he knows the company pretty well. Also, he hasn't wanted to buy anything since we were married, so they are generally really long term investments for him. He knows investing this way makes me nervous, so that is probably why he hasn't discussed wanting to do any more.

  

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• MommyLiberty5013 member

  

  June 2013

  We don't. But the key is to buy a stock that is "undervalued" as a PP metioned...so the stock has room to incrase in price. It falls into the "buy low, sell high" addage.

  A good indicator of that is the PE Ratio (Price to Earnings Ratio).

  N/A	A company with no earnings has an undefined P?E ratio. By convention, companies with losses (negative earnings) are usually treated as having an undefined P?E ratio, even though a negative P?E ratio can be mathematically determined.
  0?10	Either the stock is undervalued or the company's earnings are thought to be in decline. Alternatively, current earnings may be substantially above historic trends or the company may have profited from selling assets.
  10?17	For many companies a P?E ratio in this range may be considered fair value.
  17?25	Either the stock is overvalued or the company's earnings have increased since the last earnings figure was published. The stock may also be a growth stock with earnings expected to increase substantially in the future.
  25+	A company whose shares have a very high P/E may have high expected future growth in earnings, or this year's earnings may be considered to be exceptionally low, or the stock may be the subject of a speculative bubble.

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