Investing in Stocks

BillNye By BillNye, 30th Jul 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/1g4__i97/
Posted in Wikinut>Money>Investing

Investing in stocks can be a rewarding way to grow your money. Well-known companies often offer great rewards over a good amount of time.

Investing in Stocks

http://finance.yahoo.com/
http://www.forbes.com/sites/thestreet/2012/06/11/10-century-old-blue-chip-stocks-still-earning-their-keep/
https://www.fidelity.com/

Stocks

I have read a lot of articles lately talking about different types of investments and how they can be better than others. Some people have said that CD accounts can offer the best returns, others have suggested mutual funds. While these two types of investments do offer a return that is better than simply leaving your money in the bank, it is usually not as high as a general stock investment.

Blue Chip Stocks

A blue chip stock is one that has been proven over time to give good returns. It is a well-trusted company that will post dividends even when the economy is not doing so well. To think of a blue chip stock, think of well established companies that you know and trust and it probably is one. For example, Apple, General Electric, Proctor and Gamble, General Motors, or ConocoPhillips, are all blue chip stocks. Blue Chip stocks also tend to not be as risky as other stocks that may or may not be as reliable when the market is down. More than likely, if a company is one that is popular in today's society and something that is currently trending, it will be giving returns.

Stocks in General

I prefer to invest in stocks because they have higher returns. While it is true that stock investing on your own and not through a mutual fund or a CD that has a guaranteed return is more risky, it also has the potential for higher returns. Just think how much money you would have if you had invested in Apple 3 or 4 years ago when the stock price was below 200 dollars! This is the idea of it, though. To find companies like Apple that were undervalued, do the diligence, (research) and invest. Unless, a stock goes under, or the company goes bankrupt, if you are patient it is almost impossible to lose your money.

Researching

Researching a company's profile and statistics are vital to the stock investor. Would you buy a car without knowing everything about it first? Likewise, you should never invest your money into a company that you know nothing about. Websites like Yahoo Finance offer all the information you will need to research a company before investing. I like to look at the charts of each company to see how they have done in the past. This helps to give you a good idea of what the company is capable of and if they are currently higher than they have been in the past, or in a slump. Also, be sure to check the news about each company to get an idea of where they are headed.

Conclusion

All in all, whatever you choose to go with when investing, make sure that you understand the ins and outs of it completely before offering up your money. I prefer stocks because they offer high returns and if you are patient and have done your research it almost always pays off, but there are many other proven ways to invest that involve less risk and guarantee returns. Happy Investing!

Tags

Apple, Blue Chip Stocks, Caterpillar, Company, Costco, Economy, Graphs, Investing, Money, Mutual Funds, Patience, Popular, Research, Stocks, Time

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author avatar BillNye
My hobbies are hunting, fishing, and weight-lifting

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