My wife and I are retired. Fortunate that we have sufficient monthly income through pensions and social security. I also have money in IRA invested in mutual funds. I am 65 years old and new to MF, looking to start small with individual stock purchases using $5000. This is an investment that I could afford to lose, but obviously do not want to. Looking for suggestions about stock choices that may have high earning potential to take a leap of faith: NVDIA, Amazon, etc. I would expand as I gain knowledge to the suggested 25 stock rule. Curious as to the community’s thoughts.
Hi Noleverine,
I’m getting ready to retire myself. One of the things I most look forward to is being able to have more time to work on my investments.
You really need to ask yourself a few questions and I think the answers will lead you to a starting point.
1: What do you want to get out of this? If you have enough money to live on, what are you investing for?
2: Do you enjoy reading up on companies? Especially reading / listening to a companies quarterly reports.
3: What kind of tolerance do you have? What I mean by this is… Would you be happier owning AT&T, collecting a nice dividend or… swing for the fences and try to latch onto the next Amazon, Netflix, Nvidia etc. This is not black and white, you can be somewhere in between.
Just my 2 cents. I would also suggest looking for members who post their monthly results. You can learn a lot just from reading about their thought process. Plus, you can learn things about a company you didn’t know about.
Happy Retirement and Investing!
Darryl
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Thanks Dxmax413 (aka Darryl),
I appreciate the advice and tips. Based on my current knowledge level, I am more thinking of swinging for the fences strategy with a small amount of investment initially.
Congratulations on your upcoming retirement and for the strategy tips.
Randy
Most would begin with an S&P 500 Index fund or a total market fund (or ETF). I assume you have those covered already. It would help to know if you are a value investor or a growth investor. Value investors might prefer Warren Buffett’s Berkshire Hathaway.
As to growth investing, I’ll second your selection of Nvidia. It is the leader in AI technology, growing sharply, and likely to continue for a while yet. Amazon is getting some attention. I own some but am less impressed. Uber, Wabtech, and Lilly look interesting.
Thanks pauleckler for taking the time to share your thoughts.
Around 6 years ago I decided to do just that with a bit of cash I had. Instead of investing in growth stocks that pay a dividend, I decided to split it up and get some of the hyper growth stocks that were being talked about here.
That has worked out extremely well. I’ve learned an incredible amount about these types of stocks. Mainly some of the land mines to stay away from.
I didn’t get them all at once. When I saw a good price point, I’d jump in. In the fall of 2019 there was a rotation in the market out of hyper growth stocks. By January 2020 I was fully invested with the money I had set aside.
I didn’t put a lot into any one company, but the returns have been ridiculous. Here are the stocks I bought.
Zscaler, Crowdstrike, Nvidia, Alteryx, and Datadog.
I sold Datadog, Zscaler and Alteryx within 3 years. Not my usual pattern. I kept Crowdstrike and Nvidia and still own them. I made money on all of them but Nvidia and Crowdstrike have been absolutely incredible.
I thing is, I wouldn’t have bought any of them without MF and more particularly these boards. It wasn’t any brilliant diagnosis on my part. I just took the information provided and made some logical decisions.
Read the boards. While they are not as busy as before, there is still good information to glean. Since you’re looking at growth stocks, look at Saul’s board. Read his knowledgebase more than once. Look at the month end results from all of those guys. Read their analysis of the quarterly results. Then go read or listen to them yourself. See if you pick out the same information as they did.
I find it fascinating. Most of my friends and family just find it boring.
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The strategy you employed, mirrors what I envision for my portfolio.
Hi dxmas413,
Maybe a dumb question, but appreciate your insight.
What broker do you use to trade? I have a financial planner that can make trades for me through my IRA. Is that the most economical or efficient way?
Much thanks,
I use Fidelity, make my own trades, and pay no commissions. Works well for me.
A broker who does good work for you can be fine. They expect compensation some how. At least commissions, sometimes management fees. Ok if you think the fees are worth it.
I had TD Ameritrade and now it’s Schwab since they bought Ameritrade. I also have a Fidelity account that’s in my wife’s name. You can trade stocks with no commissions on both. My IRA’s are with Schwab and my wife’s are with Fidelity.
Thanks for the information. Much helpful.