March 9, 2012 6:23am CST
Hey all I am interested in investing in stocks and have been for a while now but I guess I am a bit scared of doing this. I know people normally say invest in big companies but the value of their shares is alot to invest in one company. I would like to know how if people here invest in stock or shares and how they choose which ones to invest in, do you do it yourself or use a company to do it for you?
9 Mar 12
I don't claim to be any great investment guru, but it seems to me the name of the game is to play it safe. I'd start by deciding how much I can afford to invest. Within that budget, I'd have a look for stable companies to put my money into - companies that are likely to get through economic difficulties without too much trouble - so I'd be thinking in terms of department stores, supermarkets and the like. And then I'd buy and hold, which is the traditional advice - just hang on to the shares and save the dividends when they come in. Use the dividends to buy more shares. After a while, start to diversify my investments in case a problem arises with my main investment. You have to think long-term, it's not like going to the bookies and putting your money on a horse. If you buy and hold, reinvest the dividends and diversify, you should be looking at a pretty nice nest egg after a few years. But you have to be patient and you have to do the research.