Your Questions About How To Pick Stocks To Buy

Robert asks…

Buying a violin from a store or the internet?

Recently, I went to a music store that sells violins. After finding one, I went online later and saw that the same violin online costs 200-500 dollars less (on many sites).

Is it just because the store included a case and bow?
What’s the difference with buying one from the store or from the internet?

Which is better?
I am not a beginner violinist

John answers:

If you are dealing with a reputable online dealer that has a good return policy (100% satisfaction guaranteed) then there is absolutely no reason to avoid shopping online. If you already know the make and model of the violin you want, and it is exactly the same one, print out the page and take it to the free standing store. They are going to give you a whole line about the expense of stocking and setting instruments up before they leave the store, but most online dealers do that as well. Next they will tell you that it costs money to keep the store open and if you don’t buy the instruments from them, they won’t be there when you need strings and rosin and sheet music. Hit them back with “From the price of your strings, rosin and music, it looks like I can save at least forty to sixty percent there as well!” After you get done with the verbal repartee, they should make you an offer that is at least closer to the one that you found on the internet. If you can live with it, then pick up the instrument (after they do all of that wonderful setting up, put a set of fresh strings on it for you, and upgrade the bow) put it in the case and take it home.

It really is in your best interest to do your business locally when you can, but not at a 200 – 400% profit margin. Always ask for a professional or student discount. Always comparison shop before you pin down a price. Watch out, because many manufacturers will sell a slightly different model number online, so the free standing stores can claim they have something superior that they can charge more for.

If you decide to buy the violin online, it should also come with a case, a bow (which you will probably want to replace as soon as possible) at least a small cake of rosin, and a shoulder strap for the case. If you communicate with the site directly, by e-mail or phone, you can often upgrade the case and bow for little money and get a couple of sets of strings to boot. It’s amazing how accommodating people can be when they actually WANT your business.

Hope this helps, best of luck with your imminent purchase. I stuck a couple of links below of sites I do business with. I am not recommending them over everybody else, but they do right by me so it’s only fair that I mention them. Besides, I need them to stay in business so I can keep getting stuff from them. Enjoy.

Helen asks…

What are the best stocks or sectors to invest in for the shrot term?

I know that anything that has to do with oil is a buy…but I’m looking for some other answers

John answers:

I invested £100K in self picked funds with Zurich International in July 2006. I invested in a very short spread of 9 Emerging Market(risky) funds.

I’ve just pulled out of these funds (which are still going up) because of high market volatility, weakening dollar, rising oil price and Sub-Prime loans problem.

When I pulled out I found that I had made 57% profit. After only 1 year.

Time and time again, I read that you should never invest short term within emerging markets, because you will never succeed in making a profit. Or so we are told. But when was the last time you ever read a successful market prediction by an esteemed Market Analyst in the newspapers? And don’t they just queue up on telly and in newspapers to give advice AFTER a crash ?

All you need to do is be able to do your market research, make up your mind and then invest. Managing the risk and timing are everything.

Good luck !!

Nancy asks…

Any stock or bonds recommendations for slow growth over many years?

Does anyone recommend any stocks or bonds for slow growth over many many years? I just want to sit back and see what happens. Not wanting to invest too much, but want to watch.

John answers:

About eight years ago I bought BPT—Prudhoe Bay Trust. It pays royalties quarterly. This week the current quarter’s distribution was announced at about $2.65/unit (like a share but differently denominated in a trust). When I first bought the trust, I paid $14.99 per unit. Those units now run $104.99 each. I buy and sell frequently, taking advantage of the trust’s enviable stability. It is influenced by the price of energy as it represents all oil produced on Alaska’s North Slope.

Jim Cramer is an ardent supporter of ownership in this particular stock, just this week speaking of it.

Another oil and gas trust is Whiting—WHX. This is another one paying handsomely while also appreciating on a per-unit basis independently of distributions cast off.

For what it’s worth, I hold both these picks and also have them set up in dividend reinvestment plans as I prefer to see the number of shares grow as opposed to skimming money off the top.

We are entering a rising FED interest rate period, not a good time to be going into bonds.

Len

James asks…

How do you get the best deal when buying a new car?

I’m buying my first car and I wanted to know how you can get the best deal possible. Do you negotiate the price of the car and if so, what is the typical range you can negotiate for? Can you give me examples of how you got a good deal on your car and what you did? Thank you!

John answers:

I have explained this many times/ go to show room/or lot/pick out one car not some car/one in stock/take 23% off the bottom line and offer that/dont go for “dock fees” get ready/ extras/tell the guy that you are a real customer and you are going to buy a car today/does he want to be the one to sell it/gotta be tough/dont be switched/stay concentrated/do not lose focus and stay on specific car

Paul asks…

How do one start stock investments?

I want to start investing in stocks but I don’t know where or how. Can anybody help me with this? I am only 19, so I’m new to the financial freedom world.

John answers:

Dont listen to Billy A. If he was really successful he would not say that. How can u put a limit on the number of shares you buy? That limits the money you can make. I like etrade.com. It is pretty simple like online banking, they have good news and updates. You can even call and talk to a broker about investing and they can give you some advice. Although i dont think that helps anybody in the long run. Because if you lose money you will blame it on the person who gave you advice. It should be you who picks you investments. Start watching “Mad Money” with Jim cramer on CNBC. Weeknights at 6pm and 11pm eastern time. Like i said tho when he gives advice do your own research and you will feel better and learn a lot.

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