If someone gave you 10k to invest, where would you start?

[Python49]

My uncle who is a rich millionaire became interested when I told him what I wanted to major in in college and base my career around. I told him financing/investing/stock for the most part and he said we could try a little experiment where he gives me 3 months to learn as much about investing as I could, come up with a plan, and then he'd give me 10,000 to invest in whatever I chose to. Just curious if you guys have any suggestions on where I should start. I plan to pick up some books about investing which I saw mentioned in other threads... but for people who already have experience in this, what would you do with it.

[solucky]

Depends what you expect. If it is a 10K present buy value here in europe we have a few companys that payout any year 5-6-7 %. 20 % in risk like Partypoker:). And dont put the 10K in one company. Guess 10 companys a grand is OK to see what happens and learn. If u do well perhaps you get a million next time:)

Wolfgang

[gabbahh]

Do not know if currently is the right time to invest money in stocks at all, but I'll give it a shot.
Since I expect prices of crude oil to sky rocket this winter, I would invest my money in stock/commodoties which profit when such a raise occurs.
Because of fear for terrorism in the USA and Europe at permanent high level, stocks which have to do with security and/or weapon manufacturing seem to be a safe investment. Do not know if these stocks are currently overpriced already.
Just my 2 cents

[Sniper]

[ QUOTE ]
...he said we could try a little experiment where he gives me 3 months to learn as much about investing as I could, come up with a plan, and then he'd give me 10,000 to invest... what would you do with it

[/ QUOTE ]

You should focus on the learning part and setting up a plan. If you get those right, the what to do with it will be the easy part.

[ewile]

Do the folowing:
Begin buying Investors Business Daily every day. Read and absorb as much as possible each day.

To suppliment read O'Neil's How To Make Money In Stocks (He's the founder of IBD)

Next buy and read Stan Weinstein's Profiting in Bull and Bear Markets. You now have read enough to have a "plan"

Now get How I Made $2,000,000 in Stocks by Darvas. This is a great, great book and will teach you the importance of sticking to your plan.

You will see how well these 3 books compliment each other to give you a comprehensive investing plan.

[Sniper]

[ QUOTE ]
Next buy and read Stan Weinstein's Profiting in Bull and Bear Markets. You now have read enough to have a "plan"

[/ QUOTE ]

Weinstein's book is OK, but there are better and it doesn't really walk you thru the creation of a trading plan.

Here's a link to an earlier thread with my suggested reading list..
http://forumserver.twoplustwo.com/showthreaded.php?Cat=&Number=2953989&page=0&view=c ollapsed&sb=5&o=14&vc=1

[Python49]

oops! i forgot to mention (since this is in the stocks forum) that it doesnt have to be stocks. It could be real estate or anything. Which is why i was wondering what would be the best option for just investing 10k and how you'd do it.

With 10K, equities are probably your best bet. You don't have the capital for real estate or the training/experience for commodities.

I probably spent 6-9 months reading (focusing on works by Ben Graham and Robert Hagstrom) before I bought anything. It was a good decision.

One more thing to keep in mind: trading for maximal gains over 3 months is VERY different from trading for maximal gains over a lifetime. I don't know that I'd want to use short-term results as a metric for knowledge gained and/or trading ability...

[NoTalent]

Use 8k of it to short KBH. Keep the other 2k for margin calls if needed.

[Python49]

as you can tell im very new to business and investing, can you explain what you mean by this... thanks

[NoTalent]

It was more in jest than being serious. Shorting a stock is risky, read here:
Motley Fool: Shorting (http://www.fool.com/FoolFAQ/FoolFAQ0033.htm)

That is a good website to get you started on basic money stuff.

My 'tip' above was to short KBH (Kaybee homes) because I think the price of the stock will go down.

[lu_hawk]

make a $10k downpayment on a $1mm home, and just get a 60 year adjustable rate interest only mortgage so that you can afford the monthly payment. only stupid people rent, and putting your money into real estate is the only way to make money.

[NoTalent]

[ QUOTE ]
make a $10k downpayment on a $1mm home, and just get a 60 year adjustable rate interest only mortgage so that you can afford the monthly payment. only stupid people rent, and putting your money into real estate is the only way to make money.

[/ QUOTE ]

What are you talking about? Why even put any money down--you would be throwing it away. Just take out an option-ARM and pay $300 a month for the first 6 months. You house should go up at least 10% by then and just sell.

[NoTalent]

Wow, maybe you should have listened to me! KB homes is down 5%

[Warren Whitmore]

By watching the "Buffett & Gates on succes" vidio.

[DpR]

[ QUOTE ]
make a $10k downpayment on a $1mm home, and just get a 60 year adjustable rate interest only mortgage so that you can afford the monthly payment. only stupid people rent, and putting your money into real estate is the only way to make money.

[/ QUOTE ]

Ahh the true sign of a bubble.