US stock · Healthcare sector · Drug Manufacturers—General
Company Logo

Johnson & Johnson

JNJNYSE

181.09

USD
+1.63
(+0.91%)
After Hours Market
24.19P/E
17Forward P/E
0.93P/E to S&P500
476.520BMarket CAP
2.36%Div Yield
Google Trends
Recent Reddit Comments

People are in awe and get salty as fuck when some large cap doesn't get ripped apart on bad news and stays down like -50% from it's highs.

Like come on man, the company is not going extinct anytime soon. Like apple or google, big tech in general, even other big shit like jnj or pfe.

These behomoths have a ton of big money investors and you need them to pull out in large amounts to cause any serious sell off on these too big to fail companies.

This isn't GE or Sears. This is a king in it's sector with an insanely strong balance sheet, huge backlog of orders , and continued future growth as well as we expand into space.

Only a fucking moron is saying "ya I don't wanna hold boeing shares anymore. They might go out of business next Q so I should sell now . I didn't think Boeing was a long term investment anyways"

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Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

If you are intrested in my writings, I have collected links to them (to this sub) on /r/lykosen

Welcome to the market.

/u/lykosen11

1
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

If you are intrested in my writings, I have collected links to them (to this sub) on /r/lykosen

Welcome to the market.

/u/lykosen11

3
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

If you are intrested in my writings, I have collected links to them (to this sub) on /r/lykosen

Welcome to the market.

/u/lykosen11

9
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by Warren Buffet, A random walk down Wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The Intelligent Investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG, and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside? If the stock goes up, what action do I take? When do I sell? At what price or % gain. If the stock goes down, when do I sell? At what % loss or a price. What risks are there? How does the worst case realistic scenario look like? Why am I making this investment right now? Is there a better time? What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

2
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

If you are intrested in my writings, I have collected links to them (to this sub) on /r/lykosen

Welcome to the market.

/u/lykosen11

2
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

If you are intrested in my writings, I have collected links to them (to this sub) on /r/lykosen

Welcome to the market.

/u/lykosen11

4
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

1
Reply
Share
Report
Save
Follow

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look. I also started at 17, but be ready to do research, invest, be happy when you do well, and then crash. All part of your learning curve.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

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Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

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Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG, and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside? If the stock goes up, what action do I take? When do I sell? At what price or % gain. If the stock goes down, when do I sell? At what % loss or a price. What risks are there? How does the worst case realistic scenario look like? Why am I making this investment right now? Is there a better time? What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

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First of all, robinhood is an phone app, and it's a commission free online broker. It's a good place to start in the US, no fees. But also...

Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI, $VWO and $VOOG,  and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. The final and great choice is $VTI, which is the global basket which contains the market as a whole.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside?

If the stock goes up, what action do I take? When do I sell? At what price or % gain.

If the stock goes down, when do I sell? At what % loss or a price.

What risks are there? How does the worst case realistic scenario look like?

Why am I making this investment right now? Is there a better time?

What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up.

Welcome to the market.

/u/lykosen11

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Hello! Welcome to /r/stockmarket

First off I’d recommend searching for posts about starting out & learning the basics, both here and on other investing/trading subreddits. The question has been asked hundreds of times, and you’ll find some amazing answers if you look.

The first thing you need to understand is that finance is all about information. If you want to learn, you need to take in information. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don’t understand, so look them up (investopedia have a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand.

Books to recommend: Anything written by warren buffet, A random walk down wall street by Burton Malkiel (how I started), Stress test by Timothy Geithner & The intelligent investor (“thick” but all important).

Pick out your favorite company in the world, and check if they are public. If they are, head over to their investor relations page and read the transcript to their latest earnings call. Read their financial statement (10-Q). If you don’t understand a word, look it up. This is frustrating but required.

There are 3 things you should consider buying as your first investment:

Large cap companies. These are the most risky you should consider buying. These large companies (Apple, Banks, Microsoft, 3M, JnJ, Walmart and the like) are stable, but can for sure give you a great return.

Specific ETFs. An ETF is a basket of stocks, often with some sort of focus. It gives you instant diversification. The specific ETFs are less risky than the single stocks, but hold risk nonetheless. Specific ETFs are baskets of stocks of varying number, letting you buy one security, and get a tiny portion of many companies. This lets you bet on a sector. Say you think that robotics and automation is the future, you can bet on that by investing in $ROBO. Other examples of these are $KWEB, chinese e-com, $FNG, media and tech, $ITA, aerospace and defence and $SOXX, semiconductors. These let you invest in a promising industry, without having the risk of a single company failing.

Lastly, and by far the best choice, is indexing. These are ETFS like $VOO, $VTI and $VOOG, and is a way to take on the least amount of risk while still gaining with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically , you can expect 7% annual gain here. That’s realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VTI focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth.

Remember, if you have to ask simple questions, you should be indexing. Asking questions is very important and a great way to learn, however, you should not make specific investments unless you can make the call 100% yourself with confidence. If you are not sure, you are making a mistake in purchasing.

Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

Why am I getting this instead of an index? Where is the upside? If the stock goes up, what action do I take? When do I sell? If the stock goes down, when do I sell? What risks are there? How does the worst case realistic scenario look like? Why am I making this investment right now? Is there a better time? What exactly am I buying?

And finally, always, without exception, perform your own Due Diligence. Don’t take advice from other people without understanding the situation yourself.

Welcome to the market.

/u/lykosen11

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Visa Inc.|V|98.21|-0.04|-0.04| HOVER: More Info |Facebook, Inc.|FB|163.21|-0.93|-0.57| HOVER: More Info |AT&T Inc.|T|36.26|+0.12|0.35| HOVER: More Info |Philip Morris International Inc|PM|119.03|-2.59|-2.13| HOVER: More Info |Coca-Cola Company (The)|KO|44.84|+0.01|0.02| HOVER: More Info |Johnson & Johnson|JNJ|135.93|+0.72|0.53| HOVER: More Info |United Parcel Service, Inc.|UPS|112.80|-0.19|-0.17| HOVER: More Info |Apple Inc.|AAPL|150.79|-0.23|-0.15| HOVER: More Info |Realty Income Corporation|O|57.44|+0.28|0.49| HOVER: More Info |Boeing Company (The)|BA|210.63|-0.16|-0.08| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Johnson & Johnson Common Stock|JNJ|136.59|+1.68|1.24| HOVER: More Info |Apple Inc.|AAPL|146.39|+0.52|0.36| HOVER: More Info |Goldman Sachs Group, Inc. (The)|GS|220.16|-2.33|-1.05| HOVER: More Info |Caseys General Stores, Inc.|CASY|105.96|-1.03|-0.96| HOVER: More Info |Amazon.com, Inc.|AMZN|1,003.03|+0.80|0.08| HOVER: More Info |Boeing Company (The) Common Sto|BA|199.87|+0.70|0.35| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Vanguard S&P 500 ETF|VOO|224.19|+0.79|0.35| HOVER: More Info |Apple Inc.|AAPL|155.17|+1.99|1.30| HOVER: More Info |Visa Inc.|V|96.01|+0.61|0.64| HOVER: More Info |Microsoft Corporation|MSFT|71.51|+1.41|2.02| HOVER: More Info |Amazon.com, Inc.|AMZN|1,006.76|+10.81|1.09| HOVER: More Info |Alphabet Inc.|GOOGL|995.37|+7.08|0.72| HOVER: More Info |Johnson & Johnson Common Stock|JNJ|129.49|+0.71|0.55| HOVER: More Info |Procter & Gamble Company (The)|PG|88.16|+0.03|0.03| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |AT&T Inc.|T|38.35|+0.10|0.27| HOVER: More Info |Johnson & Johnson Common Stock|JNJ|127.54|+0.28|0.22| HOVER: More Info |Wells Fargo & Company Common St|WFC|53.35|+0.34|0.64| HOVER: More Info |Apple Inc.|AAPL|153.52|-0.47|-0.31| HOVER: More Info |Walt Disney Company (The) Commo|DIS|107.26|-0.32|-0.30| HOVER: More Info |Amazon.com, Inc.|AMZN|969.54|-1.13|-0.12| HOVER: More Info |Barrick Gold Corporation Common|ABX|16.56|-0.32|-1.87| HOVER: More Info |Gilead Sciences, Inc.|GILD|64.65|+0.29|0.46| HOVER: More Info |Tanger Factory Outlet Centers,|SKT|26.20|+0.24|0.92| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Dow Chemical Company (The) Comm|DOW|61.75|+0.49|0.80| HOVER: More Info |Costco Wholesale Corporation|COST|176.93|+1.07|0.61| HOVER: More Info |Estee Lauder Companies, Inc. (T|EL|85.63|+0.63|0.74| HOVER: More Info |Aetna Inc. Common Stock|AET|126.68|+1.41|1.13| HOVER: More Info |Apple Inc.|AAPL|136.26|+0.54|0.40| HOVER: More Info |Johnson & Johnson Common Stock|JNJ|119.81|+0.95|0.80| HOVER: More Info |Visa Inc.|V|87.45|-0.01|-0.01| HOVER: More Info |Toyota Motor Corporation Common|TM|114.38|+0.68|0.60| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Apple Inc.|AAPL|116.22|-0.84|-0.72| HOVER: More Info |Alphabet Inc.|GOOGL|809.68|-2.52|-0.31| HOVER: More Info |Johnson & Johnson Common Stock|JNJ|115.44|+0.13|0.11| HOVER: More Info |Nike, Inc. Common Stock|NKE|52.14|-0.16|-0.31| HOVER: More Info |Starbucks Corporation|SBUX|57.11|-0.33|-0.57| HOVER: More Info |Gilead Sciences, Inc.|GILD|73.30|-0.66|-0.89| HOVER: More Info |Facebook, Inc.|FB|117.40|-1.64|-1.38| HOVER: More Info |American Express Company Common|AXP|74.58|-0.74|-0.98| HOVER: More Info

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|Company|Symbol|Price|Change|Change%|Analytics| |:--|:--|:--|:--|:--|:--| |Apple Inc.|AAPL|111.91|+0.18|0.16| HOVER: More Info |AbbVie Inc. Common Stock|ABBV|59.03|-1.39|-2.30| HOVER: More Info |Cisco Systems, Inc.|CSCO|29.97|-0.08|-0.28| HOVER: More Info |GATX Corporation Common Stock|GATX|52.46|+0.58|1.12| HOVER: More Info |Gilead Sciences, Inc.|GILD|74.52|-0.46|-0.61| HOVER: More Info |Johnson & Johnson Common Stock|JNJ|112.92|-2.15|-1.87| HOVER: More Info |Kimco Realty Corporation Common|KIM|26.09|+0.40|1.58| HOVER: More Info |Lamar Advertising Company|LAMR|66.05|+1.78|2.77| HOVER: More Info |New Residential Investment Corp|NRZ|15.28|+0.21|1.39| HOVER: More Info |Paychex, Inc.|PAYX|57.27|+0.13|0.23| HOVER: More Info

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I understand your concern about investing, and I don't want to sound condescending or anything because it's a very legitimate concern that a lot of people have.....BUT....it betrays a level of ignorance about how your money works.

Let's look at a hypothetical:

You have $10k in a savings account, down at your local bank. Interest rates in the US are around 2%, and at least for the foreseeable future they should be below 5%. Let's look at your money over time: Day 1: $10,000

Year 1 (365 days later): $10,000 - 0.02(inflation) * 10,000 + 10,000 * 0.001(a reasonable savings interest rate) = $9,810

Year 2: $9,623

Year 10: $8,254

Year 30: $5,624

So you can see that as you are right now, You're losing a pretty good chunk of money annually, because the rate of inflation is much higher than the interest rate in your account. Sure, you'll be adding to this consistently, but that doesn't change the fact that you will be losing money every year - if you want $2 million to retire on, you will have to save much more than that - in fact, you would have to save almost $80,000 per year from now until age 60 if you wanted to have $2 million in this account at retirement. You may be worried about risk now, but what about risk when you're old and tired?

So, instead let's look at just how risky mutual funds actually are. What makes these funds so powerful is that they diversify naturally. If you put all $29k into Apple stock, you would have every right to be worried. Instead, mutual funds allow you to invest in dozens or hundreds of companies in different economic sectors, without having to do all the leg work yourself by tediously picking out some energy companies, some medical technology companies, some long-term bonds, some international stocks etc.

Mutual funds are set up to do this already, and you can get a million and one of them to do what you want. If you truly feel overwhelmed, take a look at Asset Allocation Funds - they're designed for people who, well, feel overwhelmed. The fund will have a year in the title - 2030, 2055, 2060 - or something like that. Pick the year you want to retire, and invest in that one. What happens is that not only are these funds designed to encompass different economies and industries, they manage risk for you. Right now, as a 26-year old, most will have a fair amount of risk (although you can buy less risky ones). As you get closer to retirement, the fund automatically starts selling your risky stocks and moving into safer, lower-yield bonds. By the time you retire, the fund will be making almost no money, but it will also have practically 0 risk.

If you would rather have more control and knowledge over what you're actually investing in, here's some rules of thumb:

  1. Have at least a small amount invested in international stocks. Just because the US economy tanks doesn't necessarily mean Singapore's will.

  2. Invest in different industries - luxury goods perform poorly in bad times, but things like basic food, toiletries, and alcohol tend to waver less during those bad times. If you invest in Apple, Google, and Microsoft, that doesn't count as diversification.

  3. A common rule is that the percentage of your portfolio in stocks should roughly equal 100-Your age. In your case, 74% is seen as a pretty normal percentage to have tied up in stocks. More is totally fine, but from your post it sounds like you are risk averse and may want to go lower than that. Look at funds that perform well compared to their "peers" - other funds in that category. Also, look for low expense ratios - the amount that the company charges you annually can really eat into your profits, and generally an expense ratio of > 1% is a no go.

  4. Risk tolerance. Your investments are designed to work for you. If they're costing you sleep, they're doing a shit job and you should move them, even if your investments are technically sound. There's no shame in being safe, if that's what's going to make you happy. Take a quiz like this to see what your risk tolerance is, and pay attention to the risk factors in your mutual funds. Yahoo Finance, just to name one site, lays out the risk factors in a mutual fund pretty well. For example, this fund has a Beta value of 1.00 over the last decade. That's average for mutual funds, and most will lie between 0.5 and 2.00 (with a higher Beta value being more risky). Be wary of those outside that range. You can also look at the biggest 1-year drop that fund has had, as well as a few other tidbits to help you gauge whether or not the fund may be good for your level of risk. As you age, you should be taking on less risk, as you will have less time to recover if you get hit hard by a downturn.

  5. Another way to manage risk is to manage what kind of stocks you invest in. A small startup has a lot more risk, and a lot more return, than a giant like Johnson&Johnson that's been chugging along for a hundred years or something. If you're looking for funds on a site like Yahoo, Vanguard, or Morningstar, you can read a bit about the fund's goal. Here's some of the lingo you might see:

Growth = no dividends. You will get your money when you sell that stock, not before. Usually riskier.

Value = opposite of growth. The fund will periodically pay you a small amount. Usually safer.

Blend = Mix of growth and value stocks

Large Cap (or "blue chip") = Huge megacorps, generally worth > $10 billion. Lower risk

Mid Cap = $2 to $10 billion

Small Cap = < $2 billion. higher risk.

Being able to make sense of beta values, % equity (the amount in stocks. Remember the ole 100-Your age thing?), annual return, fund goals, and what exactly a "large cap" fund means can really help you invest more wisely for your own personal needs. Or, again, just go with an asset allocation fund.

  1. Now that we've talked about risk, let's talk about what you're getting for that increased risk. While year-to-year you might see a 30% return on your investments, or -30%, for the last 100 years the average rate of return has been about 7 or 8%. Your risk is practically none, and funds outperform all of the "safer" options. Now, you can get hammered if you're very close to retirement and still heavily invested in risky mutual funds, but that is easily avoidable, as we talked about.

I hope this helped!

Tl;dr: Don't be afraid of mutual funds or the stock market.

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I already gave you the trick....

VFIAX tracks 500 U.S. equities. These are companies such as Apple, Exxon Mobile, Johnson & Johnson. Back in 2008/2009, 2001, or a lot of other times these companies went down in value at the same time. Maybe not 100% of them but let's say 80% of them did. To give an example of a U.S. bonds I am going to give you a very poor example because it shows exactly what I am talking about... It is a poor example because in reality most bond funds do not work this way despite what most people think... Look at https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1405299371396&chddm=982192&chls=IntervalBasedLine&cmpto=NYSEARCA:EDV&cmptdms=0&q=NYSEARCA:SPY&ntsp=0&ei=qCrDU4jBIcSNqQGCnYC4AQ See how SPY (the S&P 500 index which is very similar to VFIAX) went heavily down and at the same time EDV went up? EDV as a negative correlation to SPY historically: more often than not if SPY goes up then EDV goes down and visa versa. It is not an exact -1 correlation, it is -.21.

Now a more commonly used bond fund would be BND. https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1405299371396&chddm=982192&chls=IntervalBasedLine&cmpto=NYSEARCA:BND&cmptdms=0&q=NYSEARCA:SPY&ntsp=0&ei=qCrDU4jBIcSNqQGCnYC4AQ BND did have an initial slight drop from +1.26% to -6%, however it quickly then recovered to +5% while SPY stayed negative. This is much closer to a 0 correlation, SPY went up and down BND had some minor changes but nothing major and not really in opposite or same as SPY. The reason I personally do not utilize BND is that I want a negative correlation to SPY and BND has almost no growth over time which it makes up for with a 3% yield normally, it is 2.56% yield right now.

Trying to use the recent 2001 and 2008 for international or REIT does not work as well as it normally does. REIT is real estate, which obviously is the cause of the recent market crash which took down both U.S. and international equity. The idea used to be that if something happens in U.S. (such as internet bubble or any other market bubble popping) that UK, France, China, etc would not be seriously affected and if anything might actually go up as U.S. investors move their money to other markets. That explains the international one, as to REIT most things which affect U.S. stock prices do not affect REIT the same. Remember, REITs are real estate why should these be affected by Tesla or google? REITs are traded on U.S. stock market just as stocks are, yet they move to a different beat.

Finally, emerging and developed also march to different beats from each other. At that point we are talking about totally different countries, some of them are more stable first world countries while others are potentially warring states. I believe that the idea is that emerging will grow faster than developed over time but it is significantly more risky.

So basically, the 5 fund portfolio I mentioned previously:

U.S. equity
U.S. bonds
U.S. REIT
International developed
International emerging

Has most of the entire market. The one main thing missing would be commodities, but most people do not bother with these just like most people do not bother literally buying a bar of gold as an investment: it is just an item there is no production involved.

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