YOUNG INVESTOR IN NEED OF PROS ADVICE

Q: I AM A 17 YEAR OLD HIGH SCHOOL SENIOR IN NEED OF THE HELP OF A PROFESSIONAL WHO KNOWS HIS/HER STOCKS. MY OBJECTIVE IN THE STOCK MARKET RIGHT NOW IS TO BUY A SUB $5 SHARE ONE WHICH HAS GREAT POTENTIAL FOR MY MONEY TO TENBAG. I ONLY HAVE A THOUSAND DOLLARS TO INVEST, WITH WHAT DO YOU SUGGEST.

A: Turn off the caps, and provide more information. Is this a class project, so
it is only play money? If it is real money, can you afford to lose it all?
No one knows which stocks will tenbag.

I am only 20 years old and a friends father (who is a multi-millionaire, but
only lives in a $100,000 house and drives a 1996 Ford Taures) got me


interested in investing about 4 years ago. The first thing he told me is
invest for the long term. The Second thing he told me is invest in good quality
companies with excellent management. Ever since then I put away $100./month
minumum. I now have a portfolio of almost $13,000 thats after I took out
$1,800 for the down payment on my Saturn. I might not eat out as much, go
to the movies as much, but I am determined not to live the kind of lifestyle
my parents have living paycheck to paycheck. I call it delayed
gratification.


You have recieved some very valuable insights from several
responses , some arogant , some useful . I personally would have
to steer you towards young Spridle .He seems to be getting some
of the most accurate mentoring . The most useful info I can lead
you to is available free at your public library , The Value Line
Publication . Also the "Motley Fool" web has proved most helpful.
For your research go to "Smart Money" .Com , by far the best info
you can get your hands on . Just remember, do your research ,know
what you are investing in . You are buying a small part of the
company . Know their business and understand the industry .
BE PATIENT above all else . Fortunes are lost by trying to time
the market .


I recommend young investors put their money into good mutual funds
and forget about it. Trading stocks takes a lot of time and, I found,
created lots of anxiety. Early on, I traded stocks, broke even, and I
worried about it a lot. In hindsight, I should have been smelling a
few more roses instead of worrying about stocks.


At your age I would recommend putting $2000 (or less if that's all you
can afford) every year into equity funds. Study "dollar cost
averaging" to understand the principle. If you max out your Roth and
then put all possible extra money into IRAs, SEPs, etc. by the time
you are 40 you will wake up one day and find that your retirement
years will not involve living out of a shopping cart. That's a very
good feeling.