Sandra101 asked:


Sandra101
Level 1
should I just invest in one stock?
I want to start investing in stock, but I don’t know much about it. I bought a book. I’m trying to study it right now. Most of the information seem vague. It can’t give me a definitive answer of what is good or bad.

What if I did this. I got $5,000 to invest. I got more money saved up of course.

I pick one iof the highly rated stock like this one http://moneycentral.msn.com/detail/stock…

or another find another stock where the price is stable and generates a dividend.

And I put all $5,000 in that one stock and keep it simple. Is that a good ideal?

I keep hearing that I should diversify.

And mutual funds seem more complicated and they charge various fees.

So is it a good ideal to just invest in one stock in which I may have researched and found dependable?

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