ustudent
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- Apr 28, 2011
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For someone who only has $2000 dollars telling them to buy 2 stocks is suicide and pointless especially nowadays with the advent of ETF's and fee free index mutual funds.
My casino analogy is quite accurate. Telling someone who is asking for investing advice on this board to buy one or two stocks with 100% of their capital is ridiculous. The OP obviously has no investing experience if he's posing this question on Style Forum (fyi, this isn't Stock Forum). By asking him to pick one stock (dividend yielding or not) is the exact same thing as going to a casino and gambling your money away.
If you think my argument is weak you should go read a book that isn't that well known called The Intelligent Investor by a not so well known equity investor named Benjamin Graham.
Theoretically there would be very little to no difference as the investor would see the return as a dividend or as a capital gain in the price of the stock.
There still is no point in buying one or two stocks with 100% of your money. Any argument against that is complete uneducated bullshit.
Hopefully you meant that it's not known on this forum. Otherwise, The Intelligent Investor and Graham's strategies have been read, researched and tested by millions.
Anyways, for a little background for anyone who doesn't know: Warren Buffet has called The Intelligent Investor the best investing book ever written and he's the best example for Graham's strategies. Graham is essentially the one who taught Buffet how to invest and was his Professor when Buffet was in Uni.