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Posted: 1/25/2006 8:10:10 PM EDT
Who doesn't (except billionaire's, of coure)?

I've been thinking about stragegies to take a $25K initial investment and try to turn it into a million bucks.  I don't mean finding some pink sheet number and dropping the whole wad on it either.  On the other hand, penny stocks are probably your best bet.  Currently, I'm doing something along the line of:

25% in stocks and funds in the value sector medium to large companies.
15% in bond funds (pretty stable if not exciting)
30% in medium to large growth stocks/funds
The last 20% is money I'm willing to put at higher risk.  Income from the first 80% can be used to supplement the risk fund.

I look for emerging companies that have new technology that can have an impact.  Energy is hot now and will be for some time, but I don't really care what sector it is in.  It has to be something tangible or able to be quickly turned into something tangible (inventory and the ability to produce more).  I stay away from services, and software.  No moat there. I only find about four or five of these stocks per year.  High risk and high reward.  I don't want anything to do with penny stocks for long established firms.  If they don't have their act together yet they probably won't anytime soon.  So far I'm averaging about a 30% return with most coming from the high risk stocks.  Patience and conviction in your choice is key.  I'm only about 8 months into this strategy.   Don't know if it work or not, but so far so good.

Please note that this is not the sum total of my savings or investments.  The bulk of it is either in 401K or other investments using a more traditional methodology.  

I'm not a day trader by any means, but I do monitor this quite closely.  

Comments from the pros?
Link Posted: 1/25/2006 8:13:23 PM EDT
[#1]
invest some, not a lot  in Iraqi money, it's worth the gamble
Link Posted: 1/25/2006 8:20:41 PM EDT
[#2]

Quoted:
invest some, not a lot  in Iraqi money, it's worth the gamble



I take it the exchange rate is a bit lopsided?
Link Posted: 1/25/2006 8:25:25 PM EDT
[#3]
If it moves a small investment could make you a lot of money
www.usdinar.com/?OVRAW=iraq%20money&OVKEY=iraq%20money&OVMTC=standard

                     
Link Posted: 1/27/2006 8:54:54 AM EDT
[#4]

Quoted:
If it moves a small investment could make you a lot of money
www.usdinar.com/?OVRAW=iraq%20money&OVKEY=iraq%20money&OVMTC=standard

                     



Did you get some from this company?  Just wandering how it worked out, good transaction?
Link Posted: 1/27/2006 9:57:21 PM EDT
[#5]
Why are you only looking at securities?
Link Posted: 1/27/2006 9:59:01 PM EDT
[#6]
Simple.  It's what I know the most about.
Link Posted: 1/27/2006 10:13:43 PM EDT
[#7]

Quoted:
Simple.  It's what I know the most about.



Doh!  Now I see.  I should have picked up on that when you mentioned the Sheets.  With the utter bitch that is Sarbanes-Oxley, I suspect the Pink Sheets will grow substantially in the next few years.

Link Posted: 1/27/2006 10:39:47 PM EDT
[#8]

Quoted:

Quoted:
If it moves a small investment could make you a lot of money                                                                                                                                                    


www.usdinar.com/?OVRAW=iraq%20money&OVKEY=iraq%20money&OVMTC=standard

                     



Did you get some from this company?  Just wandering how it worked out, good transaction?


 I bought a small amount $400 and yes it went fine
Link Posted: 1/28/2006 11:51:51 AM EDT
[#9]

Quoted:

Quoted:
Simple.  It's what I know the most about.



Doh!  Now I see.  I should have picked up on that when you mentioned the Sheets.  With the utter bitch that is Sarbanes-Oxley, I suspect the Pink Sheets will grow substantially in the next few years.




For a fact.  Transparency can be a good thing.  It can also be a very bad thing.  Got to do your DD.
Link Posted: 2/3/2006 12:36:40 PM EDT
[#10]

Quoted:
Who doesn't (except billionaire's, of coure)?

I've been thinking about stragegies to take a $25K initial investment and try to turn it into a million bucks.  I don't mean finding some pink sheet number and dropping the whole wad on it either.  On the other hand, penny stocks are probably your best bet.  Currently, I'm doing something along the line of:

25% in stocks and funds in the value sector medium to large companies.
15% in bond funds (pretty stable if not exciting)
30% in medium to large growth stocks/funds
The last 20% is money I'm willing to put at higher risk.  Income from the first 80% can be used to supplement the risk fund.

I look for emerging companies that have new technology that can have an impact.  Energy is hot now and will be for some time, but I don't really care what sector it is in.  It has to be something tangible or able to be quickly turned into something tangible (inventory and the ability to produce more).  I stay away from services, and software.  No moat there. I only find about four or five of these stocks per year.  High risk and high reward.  I don't want anything to do with penny stocks for long established firms.  If they don't have their act together yet they probably won't anytime soon.  So far I'm averaging about a 30% return with most coming from the high risk stocks.  Patience and conviction in your choice is key.  I'm only about 8 months into this strategy.   Don't know if it work or not, but so far so good.

Please note that this is not the sum total of my savings or investments.  The bulk of it is either in 401K or other investments using a more traditional methodology.  

I'm not a day trader by any means, but I do monitor this quite closely.  

Comments from the pros?



some things that stand out to me-  

1. if you want to take 25k and make  that 1000k, you need to be aggressive.
question? what is your timeline?   do you want the million in 20 years?  15?  30?   be specific, then you can base your ability to risk on that.

2. if this is your "gambling money" and the "bulk of the remainder is in "safe"" investments, why bother with bond markets?  

3.   I'd get in on the energy sector depending on the company it looks like they will be able to milk this trend for several more years.    - it is to late for reits
Link Posted: 2/3/2006 8:28:01 PM EDT
[#11]
My aggressive plays are very targeted.  If I hit a multi-bagger that will give me more to be aggressive with.    If I don't and bust I'll have to back off and save some to try again.  The bulk has to be reasonable.  I got a kid getting close to college age.
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