Brand new to the board and excited to be here. I'm a mid 30's investor who has been 100% invested in index and mutual funds for about 20 years. I have stayed on the sidelines with regards to individual stocks until now but I'm ready to get started. I am doing a ton of research into my proffered asset allocation but I'd say at this point given my index fund background and somewhat risk aversion I'd like to build the basis of my portfolio on industry stalwarts that I can hold for a very very long time. If you were starting investing today in stocks, is there a "here's the first 5 I would buy right now" recommendation anyone can give? I'm doing research on blue chippers that are good buys during COVID, but I don't want to only buy those. Feel free to share any ideas or point me to any resources that already exist on this site as I am exploring it too for the first time.
Welcome to the forums! I'll avoid giving any specific stocks, but I'll say you know who they are already. You probably are very knowledgeable about certain industries, so you should know who are the most successful in those industries. Others may chime in with specific stocks, but my two cents is that it's better to find them for yourself and to mostly stick with what you know.
Hello BB and welcome. Many mutual funds are not that bad. I don't know what you hold, and I wouldn't share an opinion if I did, but I think the odds of losing your shirt with mutual funds are minimal. I suggest trying to find a company you understand, have followed for a while, believe in, and has some value. I just suggested you become a value investor, so that's a red flag for most. Anyway, once you identify that company, allocate a reasonable amount of money to it. Perhaps something between 5 and 10% of your portfolio but you can vary it with the strength of your conviction. With your first corporate partner in hand, you can shift your focus to finding a second. Finding a company that you understand, believe in, and has value is extremely non-trivial. I feel fortunate to find one or two per year. The idea of picking 5 all at once, based at least in part on Internet suggestions, seems like gambling to me. It's important to believe in the companies you own. If you do not, you will sell at the first dip and that is a guarantee to lose money. You sound like someone who is pragmatic and patient. Regardless of the approach you take, I suspect you will do very well over time.
My industry is commercial real estate (retail/restaurant focused) and I'm heavily invested in property so I'm looking to diverse from real estate holdings a bit. Might pick up a couple of REIT's in a few select sectors. I'm just not sure where the best value currently is with the investment grade stocks. Thanks for your input!
