Buying "Safe" Stocks

[Simas9]

I am thinking about investing part of my earnings into stocks. My goal is to invest long-term (5-10 years) into some well-established/stable companies and get 4-5% annual returns/avoid inflation of my savings.

The net is full of suggestions (how strange!) about quick manipulations/schemes so it's hard for me to figure out my serious/long-term strategy.I would appreciate if someone could share some quality noob-friendly resources for learning the basics about discovering these 'safe' stocks. Any suggestions? Google stocks look good for me but I don't feel competent to make a decision.

 

[Black.Star]

Hmm tough question. In all honesty I would begin with reading a lot of books about investing and finances.
If you don't have a deep understanding of whats's going on you have to rely on the opinion of others.
Since you are looking for doing long-term investments I would start with books like:

- Common Stocks and Uncommon Profits and Other Writings (Fisher)
- The intelligent Investor (Graham)
- A Random Walk Down Wall Street (Burton Malkiel)
- Stocks For The Long Run (Jeremy J. Siegel)
- The Essays Of Warren Buffet: Lessons For Corporate America (Buffet)

 

[Sgt Kraut]

 

[skyzer_]

What country or region? On the whole find telecommunication companies, they usually pay good dividends and are stable, the yearly dividend yield around 10% is good. In Scandinavia there is Telia Sonera, in US i know Microsoft and Intel pay good dividends each year (yeah, they are not telco).
And indeed - diversify! Don't invest everything into one-two companies. Make it least into 4 different companies with 25% investment into each.

 

[davids355]

There is no such thing.
why not invest in government bonds or something? They are safe(er).
my dad is a stockbroker, and I know that's what he'd say.
when he takes on clients he cannot trade with them unless he knows they can comfortably lose all the money they invest- that's because trading stocks (even safe ones) is risky.

 

[skyzer_]

There is no such thing.
why not invest in government bonds or something? They are safe(er).
my dad is a stockbroker, and I know that's what he'd say.
when he takes on clients he cannot trade with them unless he knows they can comfortably lose all the money they invest- that's because trading stocks (even safe ones) is risky.

You are talking about short term - trading.
OP is talking about long term - investing.
So as others have said find stable companies who pay dividends and invest into them.

 

[lancis]

Long term is either gold or government bonds (or better both).
During economic crisis gold value will go up.
If on the other hand everything is stable, the price of gold will grow due to natural inflation and the government bond will generally go up in value as well.

 

[yensidtlaw]

There is no such thing.
why not invest in government bonds or something? They are safe(er).
my dad is a stockbroker, and I know that's what he'd say.
when he takes on clients he cannot trade with them unless he knows they can comfortably lose all the money they invest- that's because trading stocks (even safe ones) is risky.

You are talking about short term - trading.
OP is talking about long term - investing.
So as others have said find stable companies who pay dividends and invest into them.

I don't think you understand what davids355 is telling you. I think you missed his point. He is totally correct (which should have been obvious btw).

My future father-in-law is also a stockbroker and my fiancee works the insurance side of stockbroking. There are no safe stocks. Don't forget that you are taking a gamble when you buy into stocks. Don't listen to the media hype about how the stock market is going to crash. Just hold on for the ride. Remember these words, THE ONLY PEOPLE WHO GET HURT ON A ROLLER COASTER ARE THE ONES THAT JUMP OFF IN THE MIDDLE OF THE RIDE! So don't jump out if your stocks start plummeting.

Pour all that you can into mutual funds. I would say max out your 401K too, but to be honest I think by the time my generation gets to it, the Gov. will have given it all away to food stamp mongers.

Anyway remember to buy and hold! Buy and hold!

 

[TheMasterOfMoney]

I would go with Tesla Motors right now.

 

[yensidtlaw]

I would go with Tesla Motors right now.

http://www.cbc.ca/news/business/tesla-motors-shares-drop-after-fire-in-electric-car-1.1894864

Their 5 year graph shows some amazing growth, but how long will it last now?

 

[rave12]

Find companies like consumers products. Essential products for people, even there is a financial crisis people still needs it like Salt, Sugar etc. (You figure out the rest)

 

[Alpha.]

Honestly? I would recommend some serious research before throwing money into the stock market... I've seen people loose everything overnight without warning. Have you tried out one of those "trail-run" online "games"? Can't remember what they were called.. but basically you get a stock market simulation with all the real factors but you bet sim-money. Excellent for learning the ropes!

 

[TehEpidemick]

Maybe im crazy, but this is an easy question.

For safe, long term stocks, look for dividend paying stocks. According to Buffet, CocaCola and msft are two of the best companies.

Since 2000, msft has had a price average of $26 and has paid a yearly dividend of 2%

CocaCola is one of the most branded companies in the world. Dividend of about 1.5%

Warren Buffet has long said if he had to buy any one company to hold forever it would be Coke. And also if he could pick any CEO for coke it would be Bill Gates. So yeah, theres my 2 cents.

 

[yensidtlaw]

Listen though. You don't want to be investing anything into the stock market until you have ALL of your debts paid off. That means EVERYTHING. Usually the last thing people pay off is their mortgage. So unless you already have that paid off (and own a house obviously) then your money would be best spent on SAVING!!!

 

[HerpDerpSlerp]

the energy or technology sector. You cannot lose in the long run

 

[BadyBoySEO]

You don't sound like your particularly experienced but if you are looking for a book which will give you a good outline of how to invest for the long run, I highly recommend The Intelligent Investor. It's classic book and bible for value investors well worth a read in my personal opinion.

To be honest the majority of individuals who invest in stocks themselves fail to beat the market over the long run, which is hardly brilliant. Stocks as an investment aren't really suited to everyone.

 

[TehEpidemick]

Listen though. You don't want to be investing anything into the stock market until you have ALL of your debts paid off. That means EVERYTHING. Usually the last thing people pay off is their mortgage. So unless you already have that paid off (and own a house obviously) then your money would be best spent on SAVING!!!

Money invested into stock is normally a better investment than mortage. Depending on your interest rate.

 

[Tyrannis]

the energy or technology sector. You cannot lose in the long run

Technology sector is very volatile.. He said he was looking for safe stocks..

 

[Vrill]

Simas i would recommend first reading the terms of your broker.99% of traders will fail in the next 5 years because they are to dumb to read the terms of the brokers.Once you will read the full terms of the broker (even if its annoying) you will see that you own shit/nothing when buying through a broker.

Take this advice serious

 

[madinina]

there are no "safe" stocks, if you are looking for a reward, then there is a risk.

If you don't know anything and it's not your business, I would not invest in stocks.

If you still want to invest, I would go for for ETFs that track global indices, you will have a direct exposition to big companies and stock markets with low commissions.

I am thinking about investing part of my earnings into stocks. My goal is to invest long-term (5-10 years) into some well-established/stable companies and get 4-5% annual returns/avoid inflation of my savings.

The net is full of suggestions (how strange!) about quick manipulations/schemes so it's hard for me to figure out my serious/long-term strategy.I would appreciate if someone could share some quality noob-friendly resources for learning the basics about discovering these 'safe' stocks. Any suggestions? Google stocks look good for me but I don't feel competent to make a decision.