Low risk investments for those with little time/interest?

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Re: Low risk investments for those with little time/interest?

Postby Okami » 09 Jan 2010, 22:13

The reasoning behind the lack of interest in compound interest is due to a few things:
1. It's not taught anymore
2. Govt rates are painfully low on govt debt considered the safest and most liquid
3. Bonds can be painful, The US gov burnt bondholders big time over GM and Chrysler. The securitized mortgages were sold in a bond like instrument. There's a ton of commercial real estate paper that is going to be useful for things like lighting fires to be warm soon. I'm only mildly joking about that last bit.
4. Most investments tend to be for a short duration. Mutual funds are not known as a group as long term nor attentive shareholders.

I'd honestly just start putting money away to get into the habit now and to get used to the bite of not having it to piss away. You will think of a lot of excuses not to and that is normal. I barely talk to my mom because of this. I have a special savings account that is only for savings that I don't keep an atm card handy for. I also have my brokerage account, my money market account and my Roth IRA account. I wish I had started earlier and not been so stupid, but such is life.
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Re: Low risk investments for those with little time/interest?

Postby Chewycorns » 03 Mar 2010, 15:20

I've made some pretty good money this year on my commodity and biotech picks. Keep in mind these are aggressive/higher risk stocks. I invest in a lot more boring and conservative stuff as well. While you want low risk, if you are still in your 30s or early 40s, you should be doing about a 60 percent conservative low risk/40 percent high risk ratio in your investments IMHO. My recommendations if you're looking for a little more risk:

1. DNDN (short to mid term play). This company has produced a new injection treatment for prostate cancer. 52 week low is 3 dollars and high is 35. The trial runs for Provenge have been quite successful, and the FDA must give its approval or reject it before May 1. If they give approval, Goldman Sach has predicted that it could go up to 55 or 60 dollars. Possibly down to zero if rejected (unlikely since it saves lives). Good short term to mid term play.

2. CGA and YONG--China biotech (long term). I'm bullish on these agricultural biotech stocks in China. The country has a huge population and limited arable land. In the 8 dollar range (YONG) and 15 dollar range (CGA), I think these stocks are a bargain as there is solid growth ahead.

3. NML--Canadian ore company (long term). Huge ore deposits. Backed up by Tata company in India. Won't see production for a few more years, but has huge potential...I bought in quite low here and have been riding the wave.
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Re: Low risk investments for those with little time/interest?

Postby Mother Theresa » 03 Mar 2010, 15:56

Who didn't make good money this year?

I earned 163% on Coach in the past year. http://www.google.com/finance?q=NYSE:COH

116% on Coca-Cola bottler, KOF. http://www.google.com/finance?q=NYSE:KOF

108% on my crappy Brazilian TV company, NETC. http://www.google.com/finance?q=NASDAQ:NETC

Even 92% on my really crappy Garmin. http://www.google.com/finance?q=NASDAQ:GRMN


But, of course that doesn't quite bring my portfolio back to where it was before the debacle.

And, I think my story is the pretty much the same as everyone else's: the market was shooting straight up until the start of 2008, and it looked like one couldn't help but get rich quick, till it suddenly crashed midway through 2008. By the end of 2008 things were moving up again, as they did nicely all through 2009, but I believe most people are still below where they were in late 2007 or 2008Q1-2.

And, regardless of how well any of us did in 2009, the past is of course no indicator of the future.

Frankly, I'm still a little shaken by the idea of investing in anything. :pray:

EDIT: and I certainly no longer believe in the possibility of such a thing as a "low risk investment." :lol:
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Re: Low risk investments for those with little time/interest?

Postby headhonchoII » 03 Mar 2010, 16:42

The stock market is gambling more than investment...I'm sure people can see that clearly now. Purchasing agricultural land at agricultural prices might be a good buy. Buying solid stocks in China related to rail/ports etc. should be good too
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Re: Low risk investments for those with little time/interest?

Postby engerim » 03 Mar 2010, 16:54

Money is only worth something if you spend it.
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Re: Low risk investments for those with little time/interest?

Postby headhonchoII » 03 Mar 2010, 17:41

Unfortunately we need to spend money to live everyday!
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Re: Low risk investments for those with little time/interest?

Postby Homey » 04 Mar 2010, 03:00

GOOG


This is really a no brainer if you have any sort of a long term time frame.

Google is here to stay and they just keep growing and buying companies/technologies. While most companies are struggling to stay alive, they are steam rolling right along. They have better financials in this nasty economy than most companies attain even when the economy is good.

You will see them branch out to many new offline niches in the future, such as the recent approval to buy and sell energy. They have no debt, and billions of dollars in cash to fund their monthly acquisitions.
Why not???

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Re: Low risk investments for those with little time/interest?

Postby Edgar Allen » 04 Mar 2010, 08:49

Great this has moved from a thread on low risk investing, to a thread with stock picks !

I'm in Taiwan next week from 12th to 14th if anyone wants to have a chat about this - either individually or as a group.

Will be mostly in Taipei but planning a short trip to Taichung on the Saturday.

The bits I agree with here - put something away regularly and don't spend it even for emergencies.

Compound interest is the simplest way to think about the reasons why - although depending on the investment your return may come from capital growth, dividends, rent or some other form of "interest".

No-one is going to consistently pick the best investments. Even Warren Buffet makes mistakes but his strategy of hoooooooooooooold and then hold some more generally works. There are times when you need to put a dog down though, be aware of which investments are your dogs and kill them when you need to.

ETFs are great simply because of the way they work. They are forced to rebalance when a new player gets big enough to make the index or an old blue chip gets bought out or folds. Sure there is arbitrage for smart players when this happens but generally its a good thing for passive investors. Are there better ways to make money - sure. Are there safer places to put your money - of course. Does this mean they aren't a good idea? Well that depends on your own appetite for risk, ability to manage more complex investments etc.

Life Insurance and Mutual Funds can work out Very expensive over a long time frame but generally people don't hold them for that long - most people will build up a pool from regular investments, bonuses etc and then invest in bigger ticket items like property at some point - also not risk free as we saw last year. Watch out for hidden charges like exit penalties, annual management charges, excessive buy/sell spreads etc and read as much as you can about investing, investments, investors if you are serious about saving costs and maximising returns - if not do what works for you and keep doing it.
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Re: Low risk investments for those with little time/interest?

Postby headhonchoII » 04 Mar 2010, 12:47

Homey wrote:GOOG


This is really a no brainer if you have any sort of a long term time frame.

Google is here to stay and they just keep growing and buying companies/technologies. While most companies are struggling to stay alive, they are steam rolling right along. They have better financials in this nasty economy than most companies attain even when the economy is good.

You will see them branch out to many new offline niches in the future, such as the recent approval to buy and sell energy. They have no debt, and billions of dollars in cash to fund their monthly acquisitions.


You know, you are probably right. Could they be the next GE of the technological world?
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Re: Low risk investments for those with little time/interest?

Postby Edgar Allen » 04 Mar 2010, 15:31

headhonchoII wrote:
You know, you are probably right. Could they be the next GE of the technological world?


Or the next Marconi?
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