Fidelity brokerage account has $5,000 cash balance to invest in equities. Looking for growth of capital over next 5 years. What would you buy?

Self ^ | April 1, 2021 | Self

[4Runner]

Checked The Motley Fool. Can't afford a subscription. Their guru David Gardner is supposed to be the bee's knees.

[webheart]

I wish I had gotten into this thread 60 posts sooner.

[P-Marlowe]

I had followed some Motley Fool advice a couple of years ago. Everything they recommended that I bought was a big loser.

Buy stock in companies you like.

[Political Junkie Too]

There is a philosophy of "don't try to beat the market, buy the market."

This is implemented in what is called the Three Fund Portfolio. See this investment wiki for details.

In short, the most common three funds are the Vanguard Total Stock Index Fund, Vanguard Total Bond Index Fund, and Vanguard Total International Stock Index Fund. The allocation amongst these funds depends on how aggressive or how long you want to keep the investments.

A typical investor would likely have a 60/40 portfolio, with 60% in equities and 40% in bonds. A younger investor might tilt more towards equities.

A common three fund allocation would be 42% in Vanguard Total Stock Index Fund, 18% in Vanguard Total International Stock Index Fund, and 40% in Vanguard Total Bond Index Fund.

Note that the above is for educational purposes only and is not to be taken as personal investing advice. All investments have risks.

-PJ

[Mozzafiato]

Put it all in BlackBerry (BB) and forget it for 2-3 years. The stock will pop. It’s currently only $8.60 per share. They are in process of licensing many of their mobile patents which should generate $1 billion in revenue and allow them to grow their various products. Blackberry’s QNX software, for example, is already in 175 million vehicles on the road. I expect BB to hit $100 eventually and maybe higher.

[alexander_busek]

Fidelity brokerage account has $5,000 cash balance to invest in equities. Looking for growth of capital over next 5 years. What would you buy?

$5,000 is chump change.

Seriously: It's as though some kid said he had scrimped and saved 35 bucks and was now asking for real estate investment advice.

Pay off your debts (if any) and invest in yourself.

(I.e., use the money to improve the quality of your life, upgrade your quarters, finally buy a tailor-made / bespoke suit, etc.)

Regards,

[alexander_busek]

right now my strategy is “diamond hands.” don’t give wall street or the gov’t anything unless you have no other choice.

DIAMOND HANDS means "someone who holds stocks adamantly.". Within the stock market world, someone with "diamond hands" is ready to hold a position for the end goal despite the potential risks and losses.

You are contradicting yourself!

Regards,

[Justa]

Bflr

[Ann Archy]

A ticket OUT of America to a SANE place!

[wardaddy]

Bitcoin

[freebilly]

🦍🦍🦍💪💎💎🙌🚀🚀🚀🌕

[4Runner]

Agreed.

[nonliberal]

Fidelity has some really good mutual funds. Try the Contrafund. Also, Berkshire Hathaway B stock. But if you don’t want the volatility of stocks, their funds are great and many of them have no minimum investment. Look at the Contrafund and one of their blue chip funds.

[rb22982]

Diversify into various ETFs IMO. Get a large cap, mid cap, small cap, tech and international.

[Big Red Badger]

“Living in a Van
Down by the River
with a Bucket of KFC!”
.
THATS A WINNER!

[jdsteel]

My 2 cents for what you described:

Don’t dabble in individual stocks with that relatively small amount.

Consider ETF’s.

Consider one that tracks The total stock market. Vanguard has one.

Since we are coming out of Covid look at Leisure & Entertainment ETF’S.

Since the US Dollar is likely decreasing in value consider some foreign ETF’s.

Since Biden’s puppet masters are throwing trillions of dollars out Willy Nilly, consider ETF’s that deal with infrastructure and our electrical grid.

Since large value companies are finally becoming popular (after years of growth stocks popularity) consider ones that track the Dow.

[Georgia Girl 2]

Gold and junk silver.

[gitmo]

Buy guns.

[BlissinNC]

Not sure where you got a 2% return figure. When you open a Fidelity GO account, they ask you about your goals and your risk tolerance. I have several accounts, and the one that has growth as the overall goal has a one year return of 37.76%.

[budda1954]

Any opinion on TAAS?

[aspasia]

couldn't stand the heat from the gloom and doomers then chickened out and sold low. Slow learner

It sounds like you don't know what you're doing and may want to get rich quick. Since the sharks know more than you, and unless you go full time investor, you will lose. Become a Boglehead instead. They have a forum, they'll teach you to the basic rule of Vanguard investors.