Being a beginner, I definitely lean towards low or medium risk investments. I'm looking for a long-term investment, one that I would sell in 5-7 years after I graduate. I was looking at GOOG, mainly because I know technology more than I know other areas, and I figure I should invest in something that I have an good grasp on. Any other financial advice you people might have would be much appreciated! P.S. I love this community!
If you're looking to liquidate in a definite timeframe of 5-7 years, you might consider investments that mature in such a timeframe - perhaps some sort of corp or muni bond issue or mutual fund with such objectives, or maybe some sort of stuctured investment product designed for such a timeframe that is put together by a large and reputable institution. Google is an awesome company, but you just never know where the stock price will be in 5-7 years. It may be several thousand, or only slightly higher, or it may be less than it is now for whatever reason. There's always risk, and buying such a high-beta name with the intention of cashing it in within a definite timeframe that is only a few years away may not be the slam-dunk one might think it would be. Lots can happen.
My number one pick at the moment is Apple, so I'd recommend that. Google and Apple are both great companies in a growth industry in my opinion. Apple is a lot cheaper in terms of it's valuation and it's a cash rich company that will provide a floor to downsize risk. I don't really like bonds atm, since interest rates are so low; but if you are looking for really really low risk maybe JR Ewing is right. Go Corporate or Muni bonds, but forget treasuries.
@JR Ewing, thank you for that! With that in mind, I'm considering investing in an ETF (I had to learn what that was first haha) like Fidelity or Vangaurd. Now that I've thought about it, maybe I shouldn't be putting all my eggs in the GOOG basket. Someone told me that investing in a decent ETF means I'm essentially getting someone else (hopefully, someone who's good at it) to pick the right stocks for me.
@Jade, I think investing in Apple is an excellent idea. This company is definitely not going away anytime soon. I get that I should diversify so, out of my $5000, how much would you recommend I invest in Apple?