Warren Buffett buys (high) quality stocks, (e.g. PG, JNJ, KO, XOM) reinvests the dividends and holds on for decades. You could do worse than copying Warren Buffett.
ETF's such as DVY, VIG, SPY, and DIA should do very well over the long term. (reinvesting your dividends as you go along)
And finally, Facebook (FB) is positioned to take advantage of the mobile market, that is going to be huge. Many of the so-called "experts" think FB is poised to grow 50 to 300% in the next couple of years. (based on that, I bought some FB, but I have been wrong before)
Good Luck!
open up account at schwab, or fidelity, and trade on line. Start by buying 2000 in CD for 3 months and 3000 stocks, like SPY (S&P). just a thought. If you don't need the money, go all stock.
For most people, investments mean stock funds. Stocks are partial ownership of companies; their values go up and down as people try to predict what the future profits of the company will be.
A mutual fund or ETF lets you distribute a small investment into stocks of several different companies so that there's less risk.
The other main investment type is bonds. Bonds are loans that pay you back at a set time with a set amount of interest.
How much risk you can take depends on how soon you will need the money.
On average stocks give higher returns than anything else, but the market goes up and down a lot. So if you need this money to pay for college in a couple of years, you don't want to risk the market going down just when you need to sell your stocks. But if you're starting a retirement fund and intend to hold these investments until you're 80 years old, then you should consider international stocks.
Bonds are pretty safe because you know exactly how much profit you will make, but there is a small chance that the borrower will be unable to pay you back.
Ive been saving money ever since i was little and now at the age of 15 ive saved at least 5k in the bank from christmas, birthdays, etc. What should i do with the money to get more money or is this risky?
