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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! 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. It is not at all advisable to invest all your funds in one single stock.Remember the age old saying: No, unless you have a working time machine and can get tomorrow's financial page. |
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