Mar
Its my first step in stock investing. The more you explain in detail the more helpful it will be to me. If U could suggest me a biginners book I shall be really grateful to U. Thanks for your valuable time.
Answer:
This is only my opinion. The company that I think would be good is General American Investors, ticker GAM. It is a closed end investment company that has been in existance since 1927. Over that period of time it has an above average rate of return. Since 1979 its average annual rate of return has been 15.6%–not too bad. Because it is a closed end fund, you are not subject to specific risk that you would be investing in just one company, which is important. The stock currently sells at an 11% discount to net asset value. It is like buying stock on sale.
The con is that every year it distributes realized capital gains and you have to pay taxes on them. Last year it distributed $5.08 a share.
Here is a link to a report on the fund
http://www.etfconnect.com/select/fundpag…
And here is a link to how to invest in the drip
http://www.generalamericaninvestors.com/…
I have owned this fund since 1992.
Answer:
Look at this excellent tutorial here:
Answer:
I have had a DRIP plan of about 15 years now. The 3 companies I started out with are:
Walmart
US Bancorp
General Electric
I Love the entire concept of DRIP Plans. You get the opportunity to have the best Corporations in the world in your portfolio. Companies that you know will be around for many years to come.
You can start out with just one company. It is entirely up to you . I will list a site that could be very helpful. They have a nice DRIP section.