Investing some "fun money"

[okcBob]

Maybe this could become an interesting thread. Lots of different folks on here that do a ton of different things with respect to stocks, etc. Lots of opinions. Let me know what you'd do or where you'd put your money. Not looking for the buy ammo or put it in my mattress or buy precious metals or whatever.

Here's the deal. Spoke to Mrs 788 and she gave me the green light to take about $2K and play with it in the stock market. I already have money in a Schawb account so will be getting familiar with that platform and use it. Just have to dive deeper into it and learn the process. I already have and currently contributing to my retirement so this is to see if I can make a few extra bucks and have some fun.

If you were given $2K what stocks would you purchase? Where would you put your money? I'd be interested in buying some crypto but is just seems so confusing to me but if I could find a tutorial on how to do it I'd be game. Not looking to day-trade but find some companies that may have low prices but big upside and hold for a while. What have you done, what do you like and what to stay away from?

You’re talking speculation, not investment. So, it’s a crapshoot, gambling. A quick big return instead of investing for years in a good solid stock.
If you have to spend it in the market, I would look at penny stocks & hope for a long shot to maybe turn it into 10k.
But with only 2K invested, you’re not going to get rich.

 

[Rez Exelon]

Investing in firearms for a long term investment is possible and fairly easy. I wouldn't recommend flipping them without the license. But I've got several recently that I bet I paid well below fair market value. In a few years when I'm done playing with them I could probably return a high rate.

Primers and ammo follow cyclical cycles. Possibly worth investing in an ammo manufacturing license if you like making it and have foresight because you could clean house in forums and gunshows every 4 years.

Real estate isn't going to go down --- properly managed rentals can be a solid option.

 

[JD8]

There are other ways now. Most of mine are in ETFs (exchange traded funds). Sure you won't get rich like your Microsoft story but I'm doing far better than a CD. With an ETF you are buying a whole basket full of stocks, so one company won't take your savings if it tanks. Some of them pay 100% over what a CD does in dividend alone. Set them up for DRIP (dividend reinvestment) and it compounds over time.

I only buy dividend stocks and ETFs. My best one is paying around 7.5% right now (and that's actually down because the unit price is up) and it's up 45% since I bought it.

Great advice. Buying ETFs and good dividend stocks is the best way to go for those that don't want to watch stuff daily, or even weekly. Heck, buying ETFs probably beats a lot of fund managers.

SCHD <--------bought a lot of this one over the last year. 3.5% yield, tech exposure.

 

[jakeman]

With inflation, I'd spend it before it loses any more of its value.

 

[dennishoddy]

I probably need to clarify my comments earlier. I recommended CD's as a safe investment. If your nearing retirement, one needs to be safe. If one hasn't reached their retirement goals, it's too late now unless you can do some insider trading and are willing to spend your golden years in the crossbar hotel or be a member of congress where that is apparently legal. Just review the financials of the Pelosi family.
I've been retired for 8 years. Ventured into crypto with $350.00 to test the waters. Doge has been a bust thinking that if Elon Musk is buying it has to have a future. Nope. Three years later, there is about $150 in it.
Back in the day, our company allowed unlimited transactions to buy and sell. They would pay the fee's in our 401K.
I followed the financials of the company executives and CEO's in federal records. They have to declare trades, etc and when they are going to do them. It was cyclic, almost like a saw tooth.
Bought and sold on those schedules, an made a nice retirement by day trading. Other employees started taking note and they finally said no more free trades.
I still have investments, but only with play money. Reached the level that there should be no risk and it's time to spend down that retirement fund having fun.
I look for companies that are in distress but too big to fail.
One is GE. They got in trouble with acquiring too many assets, poor management, and so on.
Stock hit the bottom, bought in and watched. The new management realized they needed to divest themselves of losing assets and smaller assets that really didn't matter to their big picture to get money, so looked at the companies that they needed to shed.
One was in healthcare. It was profitable, but not to the standards GE expected evidently. The country is aging. Healthcare is a place to look. This stock has almost doubled in 5 or so years I've owned it.
Another was an air brake company that manufactures air brakes for semi's.
Those are not going away, in fact more trucks on the road than ever and growing. It's a long-time brand that will grow with the industry. It has almost doubled in the 5 years I've owned it.

One can't look at what has made money in the past with great dividends. GE was huge until they dumped. Lots of folks lost their retirement.
IMHO one has to look at what are future trends are that will grow. AI comes to mind.
Healthcare is another.

 

[KOPBET]

a bank CD is a no lose situation...

Except for the taxes. There's always that.

 

[dennishoddy]

Except for the taxes. There's always that.

My 401K and SS are taxed as well.

 

[KOPBET]

My EJ account was up $130,247.76/12.17% last year. Can't complain until it's time to take some $$$ out. Then comes the taxes line a bull in a china shop.

 

[TANSTAAFL]

I might also suggest tracking your stock picks before buying and selling if the goal is learning, although having skin in the game makes it more fun...

 

[Shoot Summ]

For $2k, get some tech exposure, an easy way is with SMH.