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Is it wise to invest all my funds in one stock?


Stock market knowledge

That would not be a wise choice in my opinion. If all your money is in one stock, then if that stock crashes or does poorly you could be loosing money. The risk of loosing will be much less if you use several different stocks.

Absolutely not!
You can however invest in one Mutual Fund or ETF.
I am going to assume you are a new investor. Invest in an ETF or No load mutual fund. I would suggest an index fund (Good returns, less risk). You can open an account on line with Ameritrade, Scott Trade, Fidelity or one of the others.

Good Luck!

I don't think it would be wise to invest all your money into one stock for the simple reason that if that stock fails you lose your money, but if it does well you make a lot of money. It's a high risk high reward investment. I would go with a mutual fund. It spreads your money around to different stocks, so if one stock fails and the others do well you won't lose money. It balance out. I hope this was helpful.

No. Not unless you have perfect foresight - which you don't. Every stock has risks which are specific to it. It is better to diversify across several stocks to avoid "stock specific risk". If you feel you don't have enough investable funds to spread across several stocks (preferably in different sectors) you may consider investing in a managed fund or index fund. There is a Index tracking stock called "Street Tracks" that gives you exposure to the market index. Needless to say, it's not wise to put all your money in shares either.

Nope because sometimes you will win and sometimes you will lose, and to be honest you will probably lose more than win if you are new to investing.

If I could start over, I would go with ETF's instead of index funds or mutual funds simply because you could buy into a few ETF's for the same price of one quality index fund or mutual fund. This is because most "quality" index funds and mutual funds require at least a $3,000 dollar initial deposit where ETF's do not.

I would suggest visiting Vanguard.com because they have a lot of free useful information about all funds there.

It is not at all advisable to invest all your funds in one single stock.Remember the age old saying:
Never keep all your eggs in one basket.
The same holds true for stock markets also.You should diversify your portfolio so that in case of a fall you dont loose your shirt.Remember there will be many other oppurtunities to make profit in the market but you should live to see that oppurtunity.

No, unless you have a working time machine and can get tomorrow's financial page.

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