5 answers
John
Student
Miami Gardens, Florida
6
Questions
Asked
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what are some good stocks to invest to that's dealing with covid ?
#business #finance #marketing #accounting
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5 answers
Anthony Brideau-Errigo
Financial Analyst
16
Answers
Orlando, Florida
Updated
Anthony’s Answer
Hi John,
First of all, let me say that I always get excited when someone tells me that they are interested in investing in the stock market. I honestly believe (and historical data backs me up here!) that the stock market, over time, is one of the best and most effective ways that you can make your money grow. That said, there are risks to investing in the stock market; while the historical trend of the *entire* stock market increases between 5% - 8% on average each year, there are many individual stocks that do not follow this trend. Some of these stocks can rocket upward ( you've probably heard about these over the past couple of months), but there are many that lose a significant chunk of their value, sometimes overnight!
Why am I telling you this? I am a Financial Analyst, and I have been studying, researching, and investing in stocks for around 8 years or so, and I would *never* invest in a stock that someone told me about without researching it myself first. One of my most important rules of investing is to *never invest in something you do not understand*. It can seem tempting and easy to just put money into a stock that someone tells you about, but how do you know what kind of research they've done into that stock? Do they truly believe it will perform well? Do they even know how the business is doing, or are they just parroting what someone else had told them?
If you are looking to learn how to begin investing, I would recommend starting with a paper trading account (Interactive Brokers is one brokerage that offers this, there are others). With a paper trading account, you can practice investing with fake money, which would allow you to learn the basics of buying and selling stocks - without the risk of losing your actual hard-earned money. I would also recommend reading up on investing: an excellent book that practically everyone in the industry has read is The Intelligent Investor by Benjamin Graham, and it's a great book to learn what investing is all about - as well as how to perform research on a stock.
I know this doesn't answer your specific question about which stocks to invest in right now, but I hope that this is of even greater use to you. If and when you do decide you are ready to invest, be sure you are doing it with your eyes wide open to all of the risks that come with it.
Read The Intelligent Investor by Benjamin Graham
Open a paper trading account to learn the basics of buying and selling stocks
First of all, let me say that I always get excited when someone tells me that they are interested in investing in the stock market. I honestly believe (and historical data backs me up here!) that the stock market, over time, is one of the best and most effective ways that you can make your money grow. That said, there are risks to investing in the stock market; while the historical trend of the *entire* stock market increases between 5% - 8% on average each year, there are many individual stocks that do not follow this trend. Some of these stocks can rocket upward ( you've probably heard about these over the past couple of months), but there are many that lose a significant chunk of their value, sometimes overnight!
Why am I telling you this? I am a Financial Analyst, and I have been studying, researching, and investing in stocks for around 8 years or so, and I would *never* invest in a stock that someone told me about without researching it myself first. One of my most important rules of investing is to *never invest in something you do not understand*. It can seem tempting and easy to just put money into a stock that someone tells you about, but how do you know what kind of research they've done into that stock? Do they truly believe it will perform well? Do they even know how the business is doing, or are they just parroting what someone else had told them?
If you are looking to learn how to begin investing, I would recommend starting with a paper trading account (Interactive Brokers is one brokerage that offers this, there are others). With a paper trading account, you can practice investing with fake money, which would allow you to learn the basics of buying and selling stocks - without the risk of losing your actual hard-earned money. I would also recommend reading up on investing: an excellent book that practically everyone in the industry has read is The Intelligent Investor by Benjamin Graham, and it's a great book to learn what investing is all about - as well as how to perform research on a stock.
I know this doesn't answer your specific question about which stocks to invest in right now, but I hope that this is of even greater use to you. If and when you do decide you are ready to invest, be sure you are doing it with your eyes wide open to all of the risks that come with it.
Anthony recommends the following next steps:
Ryan Anderson
Experienced Associate
1
Answer
Chicago, Illinois
Updated
Ryan’s Answer
My recommendation is to find a couple diversified ETF's and forget about them. Keep investing every month. VTI, VOO, QQQ, VXUS. Can't go too wrong. Vanguard actually recommends you invest in a combo of VTI and VXUS. Timing the market and playing trends exposes you to a lot of short term risk and volatility.
Christopher McCown, CPA
6
Answers
Updated
Christopher’s Answer
Buy low, sell high. Keep an eye on all of the stocks within sectors that were heavily impacted as a result of the pandemic (i.e. consumer discretionary, industrials, etc.). Focus on the bigger company's that are likely to survive the pandemic and buy their stock when its stock price is low but not highly volitile. You may have to hold on to it for a few years as the economy recovers, but its worth it. Always hold on to stock for at least one year for tax purposes. I call it "investing in misery" and it has worked well for me.
Hope that helps!
Hope that helps!
Gaven Giampalmi
Consulting
1
Answer
Boston, Massachusetts
Updated
Gaven’s Answer
Hi John,
It's great you are interested in learning more about investing especially at an early age. Time horizon is one of the most important factors when deciding to make an investment. It is very difficult to trade the market and make a "quick profit" so many people often choose to invest in companies or ETFs that have significant growth potential over long periods of time. Think about whether or not you think a particular company or industry will be relevant in 2, 5, 10, 20 years... that can help define whether or not you choose to enter an investment.
As far as looking to invest in opportunities that arose from the Covid-19 pandemic, start researching companies that are involved in the shift towards digital commerce and work, as well as overall industries supporting these new and what seem to be enduring behavioral shifts (E-commerce, Digital Advertising, Cybersecurity, IT infrastructure, Telecom, Workforce Management, etc.). As Anthony mentioned in the above post, always do your own research before investing and try to understand how the business works (aka how they make money).
I also recommend subscribing to the Morning Brew email newsletter to keep up with current business news and generate future investment ideas.
Best of luck!
It's great you are interested in learning more about investing especially at an early age. Time horizon is one of the most important factors when deciding to make an investment. It is very difficult to trade the market and make a "quick profit" so many people often choose to invest in companies or ETFs that have significant growth potential over long periods of time. Think about whether or not you think a particular company or industry will be relevant in 2, 5, 10, 20 years... that can help define whether or not you choose to enter an investment.
As far as looking to invest in opportunities that arose from the Covid-19 pandemic, start researching companies that are involved in the shift towards digital commerce and work, as well as overall industries supporting these new and what seem to be enduring behavioral shifts (E-commerce, Digital Advertising, Cybersecurity, IT infrastructure, Telecom, Workforce Management, etc.). As Anthony mentioned in the above post, always do your own research before investing and try to understand how the business works (aka how they make money).
I also recommend subscribing to the Morning Brew email newsletter to keep up with current business news and generate future investment ideas.
Best of luck!
Jigar Desai
Sr. Director of Software Test Engineering
5
Answers
Dublin, California
Updated
Jigar’s Answer
Pfizer, Moderna, Johnson and Johnson - Be careful with stocks swinging up/down, if you plan to hold for long then it should be good else you can get out when you see a sudden spike up cause it seems to be going up/down for last year or so. I am not a financial expert but have been buying/monitoring these and other stocks for 10+ years now.