Stocks - pick three

[Billy Cox]

If you were building a stock portfolio to fund some sort of long range financial goal, and you had to choose three stocks, what three would you pick?

Here are my three picks:

1. Amazon (tech/ecommerce)
2. Citigroup (banking)
3. Magnum Hunter Resources (domestic oil/gas)

[Bill Morrison]

Wouldn't that be gambling? I'll just stick to my "sure" thing: Social Security

BILL

[Billy Cox]

Wouldn't that be gambling? I'll just stick to my "sure" thing: Social Security

BILL

After the market took a tumble in 2008, I didn't hear anyone advocating for letting Social Security contributors invest their funds in the stock market. Coincidence?

[Rich Schmidt]

The only one I'm familiar enough with to invest directly in is Apple (Google Finance link). I bought some at $385 this past October. I wish I'd bought more. It's at $516 today.

Actually, I wish I'd bought quite a bit more in October 2008, when it was at $97!

All the other stocks we own are in mutual funds.

[Billy Cox]

The only one I'm familiar enough with to invest directly in is Apple (Google Finance link). I bought some at $385 this past October. I wish I'd bought more. It's at $516 today.

Actually, I wish I'd bought quite a bit more in October 2008, when it was at $97!

All the other stocks we own are in mutual funds.

I have a 'hobby' account with Etrade that is invested in the three stocks I mentioned. Despite a fairly major mistake, my account is still up nearly 150% over the past 3 years. My mistake was a panic-sell of most of my position in a stock that I didn't know much about when I invested. That stock has regained most of its value since then, but it was an expensive learning experience.

My 'real' retirement savings are in mutual funds although I think that a team of semi-trained monkeys could perform better than the Nazarene 403b accounts that I have.

Speaking of wishes, I bought Ford stock when it was in the $2 range. I sold when it was in the $5 range. It is trading in the $12 range today and has been as high as $18. I like Apple as a company, but I prefer to invest in underpriced stocks, and it seems doubtful that Apple is in that category.

[Jim Franklin]

My Nazarene pastor dad at $25/wk did not have be concerned with such decisions.

[Rich Schmidt]

Speaking of wishes, I bought Ford stock when it was in the $2 range. I sold when it was in the $5 range. It is trading in the $12 range today and has been as high as $18. I like Apple as a company, but I prefer to invest in underpriced stocks, and it seems doubtful that Apple is in that category.

Actually, many people believe Apple's stock is still underpriced when compared with many other stocks, based on their P/E ratio, cash on hand, revenue growth rates, etc.

For example, Amazon's P/E ratio is around 131. Apple's is under 15. That's practically bargain basement.

Some interesting articles with great charts: http://www.asymco.com/?s=undervalued&submit=Go

BTW, my AAPL shares are in my hobby account, too.

[Billy Cox]

Actually, many people believe Apple's stock is still underpriced when compared with many other stocks, based on their P/E ratio, cash on hand, revenue growth rates, etc.

For example, Amazon's P/E ratio is around 131. Apple's is under 15. That's practically bargain basement.

Some interesting articles with great charts: http://www.asymco.com/?s=undervalued&submit=Go

BTW, my AAPL shares are in my hobby account, too.

My hobby account started out as a longterm growth account, but I sell when a given stock hits a price threshold, usually 20% gain. It is more accurately a speculative strategy. I have owned a couple of tech stocks more than once, riding a price fluctuation to a price target, selling and then later buying again at almost the same price that I bought before.

So if the stock is a consistent mover, it's reasonable to ride the waves without much worry about earning per share or P/E ratios. I wonder what Lehman Brother's P/E ratio was the week before it collapsed. Just sayin'

[Rich Schmidt]

My hobby account started out as a longterm growth account, but I sell when a given stock hits a price threshold, usually 20% gain. It is more accurately a speculative strategy. I have owned a couple of tech stocks more than once, riding a price fluctuation to a price target, selling and then later buying again at almost the same price that I bought before.

So if the stock is a consistent mover, it's reasonable to ride the waves without much worry about earning per share or P/E ratios. I wonder what Lehman Brother's P/E ratio was the week before it collapsed. Just sayin'

P/E ratios are just one common way of evaluating stocks. By that (and other) comparisons, some consider AAPL to still be underpriced. That's all I was saying.

[Dave McClung]

If you were building a stock portfolio to fund some sort of long range financial goal, and you had to choose three stocks, what three would you pick?

Here are my three picks:

1. Amazon (tech/ecommerce)
2. Citigroup (banking)
3. Magnum Hunter (domestic oil/gas)

Billy

Because so much of my net worth is held in private companies, I don't buy stock in publically traded companies. I do buy mutual funds and exchange traded funds. My top three holdings are:

VTI (Vanguard Total Stock Market), VCR (Vanguard Consumer Discretionary) and QQQ (Power Shares QQQ).

VTI is a "core" holding. It tends to increase and decrease with the total stock market. It provides very broad participation. Fees are much lower than mutual funds.

VCR tracks consumer discretionary. I have it primarily because it was cheap. If the economy improves, it should perform better than VTI.

QQQ tracks the Nasdaq.