Starting long term investing.
Hello guys i am about to start investing long term, what do yoi think about buying tesla, apple, microsoft. Att and ibm for dividents and some oil, airlines companies that ate on sale currently? Could you suggest something better?
Dollar cost average, have stops if you have large positions
invest in index funds.. it's the easiest, safest, and most profitable way to invest
Just my opinion: Apple and Msft are good long term, consider Amazon too. Tesla is way overvalued and the hype can keep it going but if it fizzles it will correct dramatically. IBM makes me yawn. For divvies consider real estate stocks/funds like VNQ or O. Utilities like AWK are decent too. Some of the highest dividends I have seen are oil tankers. Last quarter Euronav paid $0.8 dividend on a $10 stock and DHT another tanker announced $0.48 on a $6 stock just for Q2. But these companies are volatile and the oil tanker business is high cyclical so do your DD. A company I personally like a lot in EV space is SHLL. Look into them. Huge potential and not overvalued like Tesla. Another company I really like is DMS which uses tech to brand and advertise for customers. It is under the radar right now. Company just became public last month and released their earnings last week. Very profitable and a well run ship. But since you will be an early bird prepare for volatility due to low volume at the moment
Tesla is way overpriced now. What do you think a fair valuation of the stock would be?
Too high rn to even consider for me. If it ever dips below $900 I may take a look at their annual and quarterly reports to estimate a fair value. If you want to gauge value yourself, look at some indicators like P/E ratio which is probably the simplest tool to quickly see if a stock is overvalued. Tesla’s PE ratio is 810 which is insane. In contrast Apple’s is 35. This mean than an investor pays $35 to get $1 profit from Apple vs paying$810 to get $1 profit from Tesla. Now ofcourse this could change quickly if Tesla’s profits soar in the next few years but as a value investor this does not make sense.
Whatever you do just dollar cost average over time
Sp500 if you are thinking of long term investing it’s safe
It's a balance of risk and reward. Individually picking stocks is a legitimate strategy. Traditional advice doesn't apply short term (< 1 year) specially in this clown economy
What would u suggest?