I was thinking about investing in some stocks so maybe I will do this. More research necessary
I deal with people's finances every day. Once a year, I help them write it up. I am uncertain as to the value of investing in individual stocks.
Sure, there will be winners and losers and the particular stock owned makes a difference. But, how can I compete with people who are looking all day long? (Actually, it's easy.) While I didn't see it this year, many years has the Wall Street Journal have a contest where they have a chimp throw a dart against the board a few times to "pick" a stock portfolio and then compare it to the best mutual funds. Who has a better result?
The results are mixed. Some funds to better, some do worse; but, none consistently beat the chimp.
If you want to "invest", you have to have a plan and not an idea. Even with research, how will you be able to tell which of the companies are going to make a profit? Are they the ones in the medical area or the consumer area? How do you know which of the ideas will come to fruition and bear profit?
I "invest" (In the stock portion.) with no-load index funds focused in the U.S. I have no idea what particular stocks I hold. I readjust twice a year to allocate risk/reward according to my theory of conditions. Speculation on a new industry with the companies generally having a short track record is more gambling than investing. When you get to the penny stocks, the gambling aspect looks more like a lottery. It's fine to throw down a dollar or two for a dream. Thinking about how to spend the dream millions is fun. However, it's not investing.
Does anyone know of a cannabis fund or index out there? As with others, I believe the industry is going to make money and I'd love to get a piece. Picking a winner, however, is better for me if I save it for the horse track.
