Skip to comments.If you were to invest 1 million?
Posted on 01/11/2014 9:28:42 AM PST by WesternCulture
I am unfortunate to have lost a very dear relative of mine.
Because of this sad occurrence, I have inherited some money.
I will not use them up at bars down in Berlin, Copenhagen and Rome Et cetera, even if this seems like something natural to do.
We all like money, don't we, but honour and family ties matter more than quick thrills.
Instead, I would like to invest in healthy companies.
If you happen to possess some knowledge of American business life that might be of use, pray inform me (- of course, the stock has got to be on the public market).
Better to buy mutual funds. That way you’re not taking a big risk on a single company.
Ruger (RGR). Solid, no debt, expanding.
ARM Holdings plc (ARMH)
You may want to speak with an accountant who specializes in such things.
Divide the money into several piles and diversify. You can get a paid stock picking service for one pile and, depending on your comfort zone, buy only well rated companies at about $10,000 worth for each stock. Cover all the major industries that you like. The problem with buying gold is some companies sell more gold shares than they have gold. It’s better to own the coins, but I’d invest no more than $50,000 and try to buy low. (You’ll need to have a safe, insurance and an alarm system.) I’d also put some of the money into another country and invest it there. You’ll have to figure out which one is safest. I’d prefer Swiss Franks. Go ahead and set aside $100,000 for expenses. That’s not really much, but it will do you no good to invest well and then get run over by a truck.
Best of luck to you.
Unless there is a fundamental change in energy...
Steady, sound, cash worth of a small country
Very difficult to manipulate
Do not try trading for short term gains. Go to the local public library and learn and use the Value Line rating system to pick stocks for long term investing. A dividend reinvestment program is a plus. Alternatively, put your money in a low fee mutual fund that aims to track the overall market.
A million dollars isn’t a lot.
I think I would buy a chunk of primarily farm land and lease it out for farming. Plant a house on a wooded portion.
This is a good starting place: http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338
It is “time tested” common sense advice. For a passive investor, the best strategy is probably to buy conservative NO LOAD mutual funds, denominated in a currency you intend to spend, like Swedish krona. Your decision may be conditioned on tax treatment peculiar to your home country. Talk to a reputable financial adviser, someone recommended by someone whose judgment you trust.
The right answer depends on your investment goals, age, risk tolerance, tax circumstances and country of residence.
ONE INFALLIBLE RULE: If it sounds too good to be true, it is. (too good to be true.) Avoid anyone with schemes that promise pie-in-the-sky returns. There are a lot of Madoff epigones out there.
What you jump into all depends on what you expect to get back out and when. Also it depends on what risk you want to assume. Without knowing more about your expectations, any advice you get is probably not going to help you. If you aren’t sure yourself what you want out of your investment, you probably want a fairly diverse portfolio so you don’t lose it all on your first bad investment.
Gold & silver coins and mining stocks.
I’m sorry for your loss.
Remit the entire sum in US dollars to: Honest Lonesome Investment Services, PO Box 666, Boston, MA, USA. You will receive double your investment by return post in six weeks, guaranteed.
Buy a warehouse of matches and woodburning stoves. When the power goes out, people will need them.
Anything I had left would go into purchasing an interest in companies that produce the essentials like food and fuel.
You might want to wait for the next big drop in the market, though.
I do manage large sums of money, considerably more than a million, for myself and other members of my family. I have been investing in individual stocks for over 20 years, and have had my share of unfavorable results. So that means it can’t go wrong, right? Well, no.
When I design a portfolio for something like this, I would typically lean towards large-cap, dividend-paying stocks to preserve capital and avoid risk. If you don’t need the income, you should also keep at least 10% cash. If, on the other hand, you do need more income, then you would have to take on some degree of risk in the current market, which is very high right now.
A typical portfolio I would design for a $1 million investment would consist of 65% blue-chip dividend payers, 7.5% REITS, 7.5% preferreds, 10% risky high-payers, and 10% cash. I would advise you to take 13 blue-chip positions of $50K each, and pick up 3 to 5 positions in each of the other categories. Yield should be in the neighborhood of 4%.
Two years ago, I could have got you 5% easily, and with less risk.
First off, sorry for your loss.
With that said, to you this should essentially be “found money”. If you can accept a small portion of that wealth being used to pay a professional, you should really speak to an accountant. Just make sure their “rate” does not come anywhere near the rate of return that you will realize from your investments.
Diversify the best you can and ask your investment consultant / accountant to look into automation technologies within the health care field. Regardless of obamacare, the health industry is looking to cut costs to survive and automation (yes it sucks; reduction in human workers) is the key; anywhere from voice to text transcription companies, remote diagnosis and robotics and automated coding software companies. Beyond that, solid robotics companies that google has not purchased yet are a good bet as they really are coming of age (I am not talking startup’s here). I am sure this will be a good thread and as another said, DIVERSIFY!! Thanks for starting it and again, sorry for your loss.
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