What is the best “unknown” stock to buy over the next year? State your reasons for recommending it?
nycguywholoveshislife asked:
Don’t answer with penny stocks, and don’t answer with large companies like Google!!
Don’t answer with penny stocks, and don’t answer with large companies like Google!!
Starbucks (SBUX):
1. It is aspirational brand
2. Massive expansion plans in and outside US
3. Good margins
4. Should do well if the economy does reasonable well.
Sorry Curio. SBUX has already been discovered. But to be honest if you are looking for a tip, you will find a million. Trouble is no matter how many answers you get, or how much you pay for those answers, it’s all guesswork or extrapolation. Only other possiblility is a working Crystal Ball. Extrapolation is probably your best bet among the 3 listed. But let’s take an example. On March 10th of this year I was given IVDN by a very talented Private Investment Advisor, who will remain unnamed. His advice was well meaning and sincere. He is not the kind of man who takes his investment work lightly. How is IVDN doing more than 7 months later? It has dropped by 20%. Now that’s not to say it won’t recover, nor is it to say that my friend wasn’t convinced it would do well over the long haul, and it may. But if a Professional Investment Advisor can’t predict what a tiny Company will do in little over 2 quarters, how would you expect anyone here to?
Here’s a suggestion, take a look at how the long time cautious investors have done. Look at Bill Miller and The Oracle of Omaha are doing. Then instead of chasing single stocks, try the Turtle who beat the hare approach, indexing.
However if you simpy must throw some money at luck, try & look up Guided Research. From here you will learn how to best pick stocks for all the right reasons. The caveat? Even when all looks like its time to buy, what just happened to yahoo? From nearly $44 in Jan to almost $24 now. The same thing which from time to time happens to most all Companies, they hit a rough spot & WHAMM!!!! The market hands them their hats and walks them to the door.
No Company experiencing a downhill slide is going to say anything until they report their earnings as they are always hoping serendipity if not proper planning will land them in Profitland. In another word, you just can’t know what is going to happen until it is too late. If you did, it would be punishable as Insider Trading.
I wish you careful trading & all the luck you deserve. Never bet your savings on a tip. I have watch a thousand of them turn into a pile of dust from the sidelines, glad I didn’t take them. Again, indexing & diverse investement indexing, from S&P 500 to Small Cap to Middle Cap to Large Cap to RE to International to Gov Bonds to Corporate Bonds to TIPS etc. Spread your bets.