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I would like to invest some money in stock. What company would be the best ? I expect 20% profit?


about 40t euro

You can certainly work toward 20% return. And surprisingly there are many stocks that return much more than that. The real trick is tracking them down. Most seasoned investors who have been around a while will tell you that over the long term you will not make 20% year after year and they will be absolutely correct. But as a one time shot in a bull market, it is not too difficult. I am somewhat hesitant to give you particular suggestions because if I give you one and you buy it and then it does not hit the 20% or worse still even looses money, you will be a very unhappy person.

Here is an approach that might however work if you are willing to do the work. Look to stocks trading in China and India. Both countries are growing about 2x to 3x faster than the U S. India in particular might be a good place to investigate. I do believe from the posts here on Yahoo answers almost everyone in India is currently buying stocks, so the demand is there. CHN a fund that invests in Chinese companies has returned 30% average annual return during the last 5 years, but you may not be interested since you are only looking for 20%. IIF a fund that invests in Indian stocks has returned 23% annually during the last 10 years. Neither may yield those returns in the future however.

Your other alternative, but it will require more work, is to mine the small cap stocks traded in the U S. Small caps have for the last 5 years outperformed the large cap stocks so there is value to be had there. The problem is finding it. There are maybe 5000 small cap stocks actively traded, not counting the penny stocks which you should avoid like the plague. IWN a small cap index fund has almost given 20% annual return during the last 5 years--17.26% to be exact. You could just buy that and forgo the other 3%. But it may not do so well going forward.

hmm.. a bottled water company, fast food chain, or a computer company

Those are high expectations for someone who doesn't know what to invest in.

You "expect" a 20% profit? Expect to get disappointed. Most analysts use an anticipated rate of return of 8-10%. Of course, that can go either way but don't plan on getting 20% (otherwise, we'd all be investing!).

If you're going to invest, you should do the research yourself and know exactly what it is you're doing with your money. My main peice of advice, passed to me from my father, is don't invest in a company where you don't know what it is they do or make. He avoided investing in Enron because of this philosophy.

Perhaps you should take a finance class before you do this so you understand all of the risks associated with investing.

YOU ARE NEVER GUARANTEED A RETURN WITH STOCKS.

CHECK OUT A STOCK ON THE CANADIAN EXCHANGE CALLED SOUTHWESTERN ENERGY RESOURCES {SWG}

If you mean 20% annually, you're dreaming. Any investment that could return that much would be very risky and you would be more likely to lose your investment. Sure, some people got in on Pizza Hut and IBM for a few dollars and are now millionaires, but for everyone of them there are several hundred who wonder where all their money went.

BBI

Try http://ibooyah.com for stock analysis and other investment matters.

If you expect 20% profit, then you ought to choose a very risky company.

The stock market returns about 12% per year on average. The risk free bond returns about 5% -- so you get an extra 7% on average for taking on the risk of the market. The relationship between risk and rewars is almost linear. That means that you would need to take on an investment with a beta of 2.1 in order to get an expected return of 20%.

While you would get that on average, there is a very good chance that you would lose money if you take on that risky an investment.

The other thing to consider is that there are two basic kinds of risk -- market risk and diversifiable risk. If you have a large portfolio, you get rid of the diversifiable risk -- so the market doesn't rewward you for taking on that risk. Of course, since you are talking about investing in just one security -- that means that you can't get rid of that risk. This means you would really have an investment that is about four times riskier than the stock market -- but you only get the reward of having an investment that is twice as risky.

My advice is to take your money and invest it in a good course on modern portfolio theory.

What you have to realize is that if you were to invest in a stock that had the possibility to earn 20% in profits, then that stock is just as likely to lose 20%. Not even most of the best money managers in the country can post those type of profit figures on a regular basis, and these are people that have been in the business for decades.

First thing that you must do is research. You need to regularly read a prominent financial papers and become better acquainted with the state of the stock market today. You should also go to your local library and pick up a couple of books on investing, just to learn the basics.

Secondly, you should focus on industries who's products you buy or who's line of work you fully understand. I like to stay away from the cosmetics industry (I am a dude, no idea why women use make-up), and the oil industry (too much speculation). I tend to concentrate on retailrs, telecommunications and electronics, because I know their line of business fairly well. Once you have chosen industries that interest you, it is imperative that you fully research all of the major players and try to find the "good" apples.

Thirdly, try to diversify your portfolio (get books on how to diversify properly) and invest in companies that you believe will appreciate in the long term. Try to stay away from "fads"; companies that are hot today but may be bankrupt in a couple of years.

GOOD LUCK!!!

Here is the reality of investing. The 2nd richest man on earth, Warren Buffet, has an annualized return of 20.4%. So unless you think Warren Buffet is on yahoo answering your question, no one can guarantee you a 20% return.

But if you do want to invest in the market, I believe small cap mutual funds will out perform in the short term future.

Invest in nanotech companies. Pick out about 10 you think have the best track record, split your money between them, sit back and wait 2 to 3 years and say your prayers every night.

How much time?

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