Your Questions About How To Pick Stocks

James asks…

Real Time Stock Pick of Warren Buffet?

Is there any real-time, or relatively fast and reliable website

that show portfolio of Warren Buffet?

I want to compare my stock pick with his so I can learn from

him.

John answers:

Warren Buffett doesn’t really buy stocks that quickly, especially now. What he held last month is probably the same as this month. If you want to know what he bought, go to http://www.sec.gov, type in his name and look for… I think its form type 4.

But you probably would be better served reading the Intelligent Investor and the Berkshire Shareholder letters. Plus, unless you have a couple hojillion dollars, your investment strategy should differ from his slightly.

Mark asks…

Stock picking tips needed please?

I have about 1000-1500 dollars I want to play on a stock.

My 3 finalists include McDonalds, Apple, and Catepillar. I have also thought about petroleum.

What advise can you give, and what are 3 stocks you think are worth looking at?

John answers:

IF you want to invest, I would consider looking at stocks at www.magicformulainvesting.com. The screener at this site screens for stocks with a high return on assets (indicating well managed) and are selling at a bargain price. It was developed by an ivy league professor, and has demonstrated above average returns.

IF you want to speculate on market movement by short term trading. QLD is tied to the nasdaqu and makes money when the market goes up. QID makes money when the market goes down. They are leveraged at 2x the market.

The advise to purchase an ETF such as DIA and SPY is very sound investing advise for someone who knows nothing about selecting stocks. However, we’ve had the longest bull market in history, I suspect we are near a market top. I’d hold my cash and wait for the market to pull back before entering.

You can buy more than 2 shares of APPLe, because the stock just split 7 to 1. Appl is considered priced below what its worth.

Also, go to www.money.msn.com (msn money website) and look at what they are doing with the stockscouter ratings. They rate stocks 1 to 10 on whether they are a good purchase or not. They also explain the fundamental and technical indicators on which there rating is based. This would be a handy tool to evaluate your three stocks.

Linda asks…

Top 3 Stock Picks??!!?

What do you think about these stock picks?
http://topinvestmentstoday.blogspot.ca/

John answers:

They are OK, but I don’t understand the author’s penchant for going only for minimum gain goals, as you undoubtedly have some losers which could quickly wipe out any of these small gains in a hurry, unless you set narrow stop loss order. I don’t think its a good long-term trading technique.

Susan asks…

Stock Suggestions!?

I’m looking for a stock that would be in a higher risk catagory that you think has a real potential for growth! I invest a small amount in higher risk stocks and am looking for some possibilities. Time to toss the dice!

John answers:

This is a free stock picking website:

http://finance.groups.yahoo.com/group/TradingZoom/

Before you plunge, get your bearings first, check out previous picks, talk to other traders.

Carol asks…

Cheap Stock Options?

Does anybody know of stocks that are good to invest in? symbols if possible

John answers:

My advice is to never take advice on buying specific stocks from an Internet posting. The advice given here may be good for the people giving it, but it could be totally unsuitable for you. We don’t know how much risk capital you have, what other assets you have, your time horizon, or your tolerance for risk. You can’t get good advice in the absence of that.

If you don’t know how to pick stocks, find yourself a good broker or start by purchasing mutual funds. Mutual funds will give you instant diversification and professional management. In the meantime, you can pick up some good books on beginning investing and learn how to pick them properly.

The key to successful investing is understanding what you’re doing. Otherwise, you’re just gambling.

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