Your Questions About How To Pick Stocks

Jenny asks…

How will my credit be affected?

I took a cash advance check against a credit card about a year ago for $5,000. I used this check to start picking stocks. I may have been foolish to use it for this purpose but I hope it paid off and was worth it. I grew this into $60,000 at this point. I paid a little over the minimum amount due on the credit card each month. I know the best thing to do would be to pay the remaining balance off on the credit card. Since I got a hugh return by borrowing this money is it going to affect my credit more than it was worth? If I pay off this credit card entirely will my credit score go up and will it be affected by having a balance over the last year?

John answers:

It depends.

Your debt to credit ratio makes up a full 30% of your credit score so if this $5,000.00 balance exceeded 30% of your total available credit then your score took a hit and paying it off will raise your score.

If on the other hand this $5,000.00 did not exceed 30% of your total available credit and you made all of your payments as agreed on time your score will still improve but not as much.

The length of time people carry a balance has nothing to do with their scores, their payment history and debt to credit ratios do.

Susan asks…

HELP!!! i have to pick a stock for economics class!?

we need to pick a stock and go to this website and see who earns the most money in the class. but i dont know what company i should choose and i dont know how to figure out how much the shares cost when i pick a company. so if you could give me a suggestion and the share price of it, that would be great… thanks 🙂 oh ya and it could be any stock… the website is there so that you could see the progress and see if its a good pick. but remember that not every company is there. (the ones i cant pick are google, apple, microsoft, costco, walmart and mcdonalds)

John answers:

Using one of my favorite stocks that has a consistent growth.
UNION PACIFIC: stock symbol UNP
located by click on the U and then clicking on page 13.
Quote (Stock price at closing of market): $65.05 (Recent Activity)
Month Chart:

This stock has nearly doubled in a 52 week period.

Laura asks…

my mother lost with stocks

When I was a male only in my 20’s my mom asked me to try to pick winning stocks for her because she felt I had an interest in this. She was hoping I would make a killing at this for her. I ended up picking highly speculative technology stocks that lost most if not all of their value. My mother has been widowed for 34 years and is now 74. My mom even insisted that I send in her bills so that she doesn’t even have to look at them. Since she has been away from everything financially she feels she should have a lot more money and doesn’t understand it and suspects I may have stole money from her. I used a lot of her money through the years due to rising inflation to meet her house expenses. My mom even asked my cousin to do a credit report on me when she gave her my social security number. This is actually unlawful without my permission. She seems so suspicious of me with money and I never asked to be involved with her finances. I have lost all interest in being with her or helping her with her house. I guess the thing that is hard for me to accept is that I don’t have any money and I feel she thinks I have plenty. I don’t know how to take the way she feels about me and wondered how other people would feel if they were me.

John answers:

Your first mistake was to invest in risky stocks you would have made money if you had invested in utilities instead of what you did
now tell her that if she doesnt trust you to hire some one to take over as you are getting all of the grief and no pleasure in this venture

Steven asks…

is there a website to view fund’s live stock picks?

im looking for a site that shows you live updates of when major mutual and hedge funds make major moves on stocks. i see that has the positions of these professionals, but i cant tell how soon it is updated. anyone know of any sites?

John answers:

No of course not. The stock picks are the fund’s secret sauce. The top holdings are generally 3 months old, they have to file them quarterly. Tba

Charles asks…

How easy is it to become a millionaire if you follow Warren Buffet’s advice?

Warren Buffet’s stock picks and methods are very well publicized and relatively straight-forward. Yet I can’t think of any millionaires who claim to have gotten that way following his advice. What about his approach is so difficult that any investor can’t follow and get similar results? Somebody once told me the the answer is patience, but I can’t believe there aren’t any patient investors out there. What gives?

John answers:

He waits for a stock or the entire stock market to take a dive
like in 2008, then he swoops in and buys at the low prices.
It takes a lot of nerve and patience and a bit of luck to come
out a winner making big bucks.

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