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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (17867)	10/14/2003 8:20:16 PM
From: Joan Osland Graffius	Respond to of 78475

wak, What I did with my daughter's IRA a couple of years ago for growth is to buy HQH a CEF. It is a bio tech health care closed end fund. They pay nice dividends and it can be reinvested. It is expensive right now, but with the reinvestments and assume it goes down to the low end of the trading range your 15 year old will be ok over time if things get sold off. The yield on the fund runs between 14 and 16 percent. I happen to think this is a great growth area for quite sometime. Edit, he could hedge this with a gold stock like AU, GFI or HMY. These stocks pay dividends and the SA folks have been in this business for 200 years - I do not think they will quit now. <g>

To: - with a K who wrote (17867)	10/14/2003 8:21:20 PM
From: Mark Marcellus	Respond to of 78475

Don't know a lot about ETF's (though they may not be a bad idea) but have you considered DRIPs? Companies aren't as supportive as they used to be, but there are still some stocks out there that are DRIP friendly. I think BI lists some of them.

To: - with a K who wrote (17867)	10/14/2003 9:28:21 PM
From: Jurgis Bekepuris	Respond to of 78475

You should also check if the funds you plan to buy allow odd lot purchases. Some indices (SPY? QQQ?) don't - you have to buy at least 100 shares. No ideas on ETFs, since I've only researched Asia Pasific ETFs, which are too narrow for your purpose. Good luck Jurgis - holding IIF, which has run up a lot, as has everything...

To: - with a K who wrote (17867)	10/15/2003 12:24:27 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78475

As usual, I will voice a contrary opinion regarding your budding teenage investor. Totally contrary, I assume -g-. I don't see it as being about something you want for him. It's about what he wants for his (er,his Dad's) money. Imo. Is it something to get him started? What's his timeframe/patience level? Is it to make money quickly? What's he interested in? What will keep his interest in investing (assuming that might be a parental goal)? Can he even stick six months with one or two stocks? I don't know anything about ETF's. They sound dull and boring to me for a teenager. When the question was asked here a couple of years ago for a teenage girl about what stock she might buy to get her started and interested, my suggestion was CAG because of its diverse food products everybody knows about (coupons in the annual too), the increasing dividend, the chance for stock appreciation. I believe now that that was the wrong stock. Like watching paint dry. Too slow for a kid (I am guessing). Same with most value stocks - prosaic, 2nd tier or lower companies that most teens never heard of (I am guessing). I would bet - given that the kid likes AMD - he wants something with a high pride/shame ratio - something where he could brag to his friends - where he wants to maybe know about the company, maybe already knows the products, is hip to what's going to be introduced to the public. How about others in that venue? Maybe Harley-Davidson? A car company? Computer company?Adobe? Maybe a company where his relatives work? A place he goes shopping? ANF, VANS, HD? A movie studio? Something with a little juice in the stock (good trading range)? Or maybe he just wants to double his money by the end of the year. There are some people on this thread with very good success that can give some small-cap stocks to make a bet on. Or maybe he is special (a patient investor, not expecting to double his money in two months) - after all, he was smart enough to ask you for advice - maybe he does want a couple of your value stocks. In any case, ASK HIM! As a corollary, my other way-divergent and strong opinion - mentioned here and elsewhere - is that it's darn difficult for most people, new to the market, to make money the way the books say you should. (Somewhat like Mr. Buffett's shrugging his shoulders about how some (many?) people just don't get it about buying $1 for 50 cents - you see it right away or else maybe never.) Most people make most money by NOT trading, by NOT playing futures, by NOT margining up to the hilt, by NOT making big bets on iffy companies with no earnings, etc. etc. IMO, this can NOT be learned from books or from parents. It just doesn't sink in. It's only after - through experience (that means losses -g-) - that one sees the path that is right for himself/herself. (That path may likely follow (We hope -g-)some of the good specific suggestions of the experienced posters here.(ie. those who have tread the path.) In any case, the opinion I hold is that rather than tell or show the kid the best choice that might be available to him that he should take, I say his own experience must be the teacher. Therefore let the kid try everything he can and is interested in now, while his play money is small, and his losses will be small too (in the scheme of things). He may learn soon enough (maybe) what works for him if he sticks with investing. Again just my opinion, even if I am wrong many, many times. Paul Senior