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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: alex avstreykh who wrote (23808)	4/2/1998 4:00:00 PM
From: Diamond Jim	Read Replies (2) \| Respond to of 97611

You are too young to gamble.

To: alex avstreykh who wrote (23808)	4/2/1998 7:50:00 PM
From: mozek	Respond to of 97611

Alex, Personally, I have put a great deal of my own money into CPQ, and I consider it a good value. I'd recommend that you not consider an investment the same as a "gamble". Many people on SI do look at these two things as the same, but there is quite a bit of difference investing in the stock of a company and trading for short term price swings. What I mean is that if you are planning to put $800 into stock of a company you believe in and leave it alone for the next 3+ years, that is not gambling, that is investing. I'm currently 35, but when I was 12 years old, I had $140 dollars to invest and I bought stock in a company called Physio-control. A few years later, Eli-Lilly purchased Physio, and by the time I sold my stock (which I should never have done) I made $1200 on my original investment. Looking out a few years, I believe you could do very well investing in CPQ. I do consider CPQ to have a strong long term future. You may also do very well with a company like Lucent (LU), which will continue to be a major player in the development of broadband communications. Another company which has recently been out of favor, but is coming back and has a strong future ahead is Qualcomm (QCOM). I believe that any of these three companies would be great, long term investments. I think it's great that you're interested in investing at your age. Please try to take the long term view and avoid worrying about making money in the short run. Mike

To: alex avstreykh who wrote (23808)	4/2/1998 9:06:00 PM
From: Mike Gordon	Read Replies (2) \| Respond to of 97611

<<< im 12 years old and i got $800. is cpq a good buy for me?> Alex: First let me commend you for being clever enough to have concern about the future of your $800. In answer to your question, it appears that CPQ is a reasonable buy. However, I'm just one person out of millions who hope that our opinions are right. The cold truth is, most people guess or depend on others to come with an answer. Many of us are wrong. Alex, the return on your $800 will be seen on the education you receive by your decision to invest. That decision must be based on your study, market association, and overall gut feeling. If I were you, I would do the following: Make a commitment to myself to achieve a return, but more importantly acquire an understanding of the markets. Seek out people who are familiar with the markets, school, professionals, etc. Talk to them about the market and CPQ in particular. Never take their advise on face value. Use their advise as an opportunity to confirm their understandings in the library, net, etc. After all the research you can possibly stand, make your move. Be proud of what you've done and be able to defend your strategy. However, if proven wrong, correct your mistake and move forward. Track your stock daily. Develop your own tracking and charts. Don't depend on professional tracking or charts until you're good enough to build them yourself. Additionally, establish and track the value of the "Alex Fund". Use the gains or loss in your fund to determine if you're good, bad, or just average. Calculate your rate of return. Using your newly acquired knowledge, look for other stocks you'd like to own. Establish a family of 5 stocks that you know as well as your best friend. If appropriate, reinvest. If possible, save monthly. Place your savings in the "Alex" fund. This fund will be your future. Take the time to figure out how much your fund would be worth by a $2000 contribution annually after you're 18. (Sooner if possible) If you're ready to make a commitment to the education required to manage your $800, you'll have your million before you're 35. If you're not ready, put the money aside. CPQ and many other good companies have an excellent Dividend Reinvestment Programs (DRIP)s. However, you'll miss the most beneficial dividend of education. Feel free to contact me or any regular on this thread for help and advise. Mike

To: alex avstreykh who wrote (23808)	4/3/1998 1:40:00 PM
From: Matt Kaarlela	Respond to of 97611

Alex, I thought about responding to your original question but decided not to. Now after reading other replies, I decided to go back to your original question and reply. If you are in fact only 12 years old, I think it is great that you are thinking about investing for the future. I even encourage my 6 year old son to save part of his allowance for the future. The biggest asset young people have on their side is time. OK, now if I were 12 years old, I would invest the money in a mutual fund that tracks the S&P500. You might see it referred to as an index fund. Some mutual fund companies will let you start an account with as little as $500. Over time, history shows index funds are a great way to build wealth. Trading stocks is fun but is also risky and you might be better off starting conservative. Good luck and don't forget this is just one persons opinion. You should learn as much as you can before actually investing your money.