| As anyone will tell you, when you are a beginning | | | | possible. You often avoid broker fees in doing so. |
| investor, starting small is important. So, how do you | | | | Your dividends, or profits, get reinvested back into |
| get your portfolio started now? Don't go and start | | | | that stock. Often times, you can get a discount |
| your portfolio with penny stocks just because | | | | below the market rate for the shares or partial |
| they're cheap (the exception is the US automakers, | | | | shares you buy this way. |
| but they could go either way) | | | | You have in some cases the ability to send in money |
| Just as important, don't go and invest in Mutual Funds | | | | every month, which goes towards partial shares. You |
| just because it takes the risk and give it to a group | | | | don't have to send in money equal to a whole share's |
| of people. My favorite investment strategy for | | | | cost. |
| beginners, who are interested in long-term | | | | I recommend starting multiple DRIP accounts at once |
| investments, is called a DRIP. That's short for | | | | - just set a budget, and locate 5-10 stocks to buy |
| dividend reinvestment plan, or program. | | | | single shares of just like this. You can literally watch |
| The concept is simple. You buy a single share of a | | | | them grow over time without doing a thing. I |
| proven stock, something that you like; making sure | | | | recommend 10 shares, and investing $10 per month |
| the share is in your name. Brokers will cringe at what | | | | into each of them. This gives you the chance to |
| I'm about to say: buy it directly from the company if | | | | invest on a budget, and still meet your goals! |