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Old 11-19-2002, 03:19 AM
PokerBabe(aka) PokerBabe(aka) is offline
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Join Date: Sep 2002
Location: Las Vegas, Nevada
Posts: 867
Default Re: Thought I had a simple question but....

The best thing to do with 5K or so is to invest in a broad index fund such as the S&P500. This will give you instant diversification and the most "bang for your buck". You can reinvest the dividends and continue to add to the fund at whatever intervals are convenient. If you buy the S&P 500, you will own both INTC and GE along with other big names such as WalMart and IBM. It's the best way to start a program, IMO. This index fund will perform as well (or as poorly) as the S&P 500 does. Thus, if the index is up 8% next year, your fund will be up 8% as well. Try Vanguard Funds for this purpose. As for books, Peter Lynch's books are excellent. Also, William O'Neill's book entitled "How to make money in Stocks" has some good fundamental information as well. Buy low, and LGPG. Babe [img]/forums/images/icons/cool.gif[/img]
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