Investing for Blacks Pt. 2

   First thing first is to understand what it means to invest, you are providing a capital base for these companies. Simply put you're giving them cash, to be able to conduct business with or maybe reinvest themselves. In return you get a stock with a certain value as the company grows the value of that stock will grow.

Things to Keep in Mind

Investing is long term - invest now and cash in later. Best practice example back in the late 2000's Apple was trading at an average of $87. Today not only is it the worlds most valuable tech company but it's stock trade at about $542.

Research is Key - know who and what you are investing in. Understanding the type of company and the sector(s) they do business in is vital. Is this a growing sector or is it a sector that has great potential.

Be Consistent - do not drive yourself crazy, checking your portfolio ten times a day or several times a week. Losing your mind when your stock drops a few pennies. Establish a pattern to check on a regular basis, a few times a week. Watch the trends try and forecast when is the optimal time to sell.

Five stocks that have great potential.

Bank of America (BAC) - for months I've been saying buy buy buy. At that time the stock was around $5, now it's at around $8. A 30% increase but the best days are yet to come. It's a stock you will have to hold onto for at least another year possibly two. Long term investment.

General Motors (GM) - 3 years ago it was on a lifeline, now it's #1 in the world in car sales. Currently at $24, and forecasted to continue to rise. This is a stock where knowing the industry is key, as car fuel efficiency standards rise expect to see greater growth of the car industry

Morgan Stanley (MS) - a company that I thought during the height of the economic crisis was bound to fail. They were extended to far and not enough cash on hand. They've been restructure and with new investment are poised to see new growth. The stock is currently trading around $17 now.

Dana Holding Corp (DAN) - a global leader in the supplying of axles, driveshaft, and heat-exchange and thermal bypass technologies. With the automotive industry picking back up the current price of $15, is sure to also rise.

   American Express Co (AXP) - one of the safer investments I believe can be made. This stock is currently trading at $58 and cost more than the others. But I recommend this stock on future directions of the company. They are in the beginning stages of releasing a prepaid "credit card," that will include some of the same benefits as regular credit cardholders. This will not only boost AMEX's customer base but will most likely lead to greater profits and revenue.

   It is best to keep in mind that when in investing you a taking a chance and there are risk that come with it. But it is truly best to do your research and find out background information. The stocks listed above are recommended on my personal assessment and feelings of how the companies in coming months will perform. They may not be the best move for you to make, but I do hope they give you a starting point and peak your interest to invest.

Remember the only bad investment is no investment at all.

*Apple doubles Profits*

*Theory Republic or its owners are not responsible for any lose as a result to the purchasing of any stocked in the companies previewed in this piece


Rum-Punch Drunk said…
Glad for the advice in people doing their research. I'm always very nervous with anything that can go DOWN as well as up. I knew someone who lost thousands of pounds a couple of years ago. We invested at the same time (competing against each other to see who would get the most return) and he used stocks/shares and I used a variety of saving accounts/bonds etc... I was heads up big time.
I might just have a peek at your tips though.
Theory Republic said…
Thanks for reading and commenting, definitely appreciated. I would also recommend savings accounts and bonds, especially American Treasury Bonds, still the worlds most secure currency and the interest rates higher than anything else out there. But as I tried to stress taking part is what's most important. Again thanks and come back soon.
MarK said…
What avenues would you suggest for investing? I know that I have had an interest in investing but don't know where to start please note that I do not want to pay a broker so where can I go to get started?
Theory Republic said…
@BeautifullyME, there are several different avenues you can explore, there's TD Ameritrade, ETrade, Sharebuilder through ING, Scottrade, TradeKing, and others. Many of them also new account offers, so just check them out.

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