Best investment for $500

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paisahunt
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Best investment for $500

Post by paisahunt » Tue Feb 03, 2015 11:20 pm

People says, if you have invested in Apple in 2000 for $1000, you would have a made fortune, or Google in 2004..., Microsoft in 80's or Starbucks in 90's...etc, the list goes on. This is just in stocks, and real-estate is another set of discussion...

If I have $500 that I would like to invest, not touch for 20 years, and willing to lose it's value completely.
What would you think is the best value of money, and your reasoning...

Thanks for your replies!

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linuxology
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Re: Best investment for $500

Post by linuxology » Wed Feb 04, 2015 12:35 pm

26 black on roulette wheel.

ny_rn
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Re: Best investment for $500

Post by ny_rn » Wed Feb 04, 2015 12:48 pm

paisahunt,

Welcome to the forum.

Sounds like a lot of investment pornography to me. Stay away from that.

I think you should keep your $500 in a savings account until you can purchase a Vanguard Target Date Fund, LifeStrategy Fund or Total Stock Market Fund. Then, direct all money you do not need for 20+ years into that.

If that's too boring for you, you could go to your nearest casino and place $500 on red or black.

Your choice...

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tludwig23
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Re: Best investment for $500

Post by tludwig23 » Wed Feb 04, 2015 12:50 pm

BABA.

Their growth is unstoppable. Jack Ma is "the Man".
That's what I do: I drink, and I know things. --Tyrion Lannister

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tludwig23
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Re: Best investment for $500

Post by tludwig23 » Wed Feb 04, 2015 12:53 pm

ny_rn wrote:I think you should keep your $500 in a savings account until you can purchase a Vanguard Target Date Fund, LifeStrategy Fund or Total Stock Market Fund. ...If that's too boring for you, you could go to your nearest casino and place $500 on red or black.


I think the OP might be looking for a middle ground.
That's what I do: I drink, and I know things. --Tyrion Lannister

Gropes & Ray
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Re: Best investment for $500

Post by Gropes & Ray » Wed Feb 04, 2015 12:54 pm

$500 is not an insignificant portion of a beginner's portfolio, and the odds of picking the next google are virtually nil. I wouldn't be willing to go to zero on that. It would be like paying 0.5% more e/r for the same expected return, which I wouldn't do.

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tludwig23
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Re: Best investment for $500

Post by tludwig23 » Wed Feb 04, 2015 1:04 pm

ny_rn wrote:...keep your $500 in a savings account until you can purchase a Vanguard Target Date Fund...


Gropes & Ray wrote:...$500 is not an insignificant portion of a beginner's portfolio...


Who said the OP is a beginner just because this is his first post?

I agree that the most likey successful solution is to put the $500 into a low cost index fund, but, that isn't what he asked. He also clearly stated that he was willing to possibly lose this money.
That's what I do: I drink, and I know things. --Tyrion Lannister

slbnoob
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Re: Best investment for $500

Post by slbnoob » Wed Feb 04, 2015 1:10 pm

MJNA
full disclaimer: I wouldn't do it myself.

niceguy7376
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Re: Best investment for $500

Post by niceguy7376 » Wed Feb 04, 2015 1:17 pm

If you want to invest for 20 years, EE Bonds. Guaranteed to double in value.

if it is more for instant fun, I will buy Megamillions as follows.
$1 ticket - buy 15 of them with the yellow number of each ticket to be unique from 1 to 15. Then apply the megaplier for all. Total Cost $30.
You are guaranteed to get $1 back.

Repeat for 16 weeks. Total Cost $480.
Guaranteed return - $16

So with the remaining $36, do the 17th week.

Quite a lot of numerical fun for 3 + months.

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tyler_cracker
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Re: Best investment for $500

Post by tyler_cracker » Wed Feb 04, 2015 1:19 pm

VT

(Your message contains 2 characters. The minimum number of characters you need to enter is 5.)

Gropes & Ray
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Re: Best investment for $500

Post by Gropes & Ray » Wed Feb 04, 2015 1:28 pm

niceguy7376 wrote:If you want to invest for 20 years, EE Bonds. Guaranteed to double in value.

if it is more for instant fun, I will buy Megamillions as follows.
$1 ticket - buy 15 of them with the yellow number of each ticket to be unique from 1 to 15. Then apply the megaplier for all. Total Cost $30.
You are guaranteed to get $1 back.

Repeat for 16 weeks. Total Cost $480.
Guaranteed return - $16

So with the remaining $36, do the 17th week.

Quite a lot of numerical fun for 3 + months.


I like this idea. I enjoy the lottery, but I generally only play 4-5 times a year.

I have never researched a stock in my life, but I guess I would choose some kind of biotech company.

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Toons
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Re: Best investment for $500

Post by Toons » Wed Feb 04, 2015 1:28 pm

Mcdonalds.People just love double cheeseburgers and fries. :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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tludwig23
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Re: Best investment for $500

Post by tludwig23 » Wed Feb 04, 2015 1:31 pm

Toons wrote:Mcdonalds.People just love double cheeseburgers and fries. :happy


And it comes with built in geographic diversification, ala the "Royale with Cheese" in France. :beer
That's what I do: I drink, and I know things. --Tyrion Lannister

airshow
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Re: Best investment for $500

Post by airshow » Wed Feb 04, 2015 1:32 pm

OIL etn

now's the time to buy!

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cheese_breath
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Re: Best investment for $500

Post by cheese_breath » Wed Feb 04, 2015 1:57 pm

You're not talking investing, because I don't believe people invest with the feeling it's OK to lose it all. You're talking speculating. Nobody knows what the next Google, Apple or whatever will be 20 years from now. That's why many of us put our investments into broad based index funds covering a great portion of the markets. Schwab has several good index funds with minimum entry requirements less than $500. But if you really want to speculate I'd recommend $500 worth of Mega Millions lottery tickets. The potential payout is astronomical, and you won't have to wait 20 years to see if you lost it all.
The surest way to know the future is when it becomes the past.

Jack FFR1846
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Re: Best investment for $500

Post by Jack FFR1846 » Wed Feb 04, 2015 2:02 pm

Valentine radar detector. Mine has paid 1000% in no tickets since 1987.
Bogle: Smart Beta is stupid

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tludwig23
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Re: Best investment for $500

Post by tludwig23 » Wed Feb 04, 2015 2:05 pm

Or, you could argue that you invest in all the factors over this long time period and buy a small, value ETF such as RZV or VBR.
That's what I do: I drink, and I know things. --Tyrion Lannister

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Toons
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Re: Best investment for $500

Post by Toons » Wed Feb 04, 2015 2:24 pm

tludwig23 wrote:
Toons wrote:Mcdonalds.People just love double cheeseburgers and fries. :happy


And it comes with built in geographic diversification, ala the "Royale with Cheese" in France. :beer


:sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Quickfoot
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Re: Best investment for $500

Post by Quickfoot » Wed Feb 04, 2015 2:26 pm

If you already have a brokerage account buy $500 of a S&P 500 ETF and forget about it. All of the stocks you listed have made people money but they all also have cost people a lot of money, making money with individual stock relies on timing that you have no way of knowing if you'll get right until after you either make or lose money.
Last edited by Quickfoot on Wed Feb 04, 2015 2:28 pm, edited 1 time in total.

Fallible
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Re: Best investment for $500

Post by Fallible » Wed Feb 04, 2015 2:27 pm

paisahunt wrote:People says, if you have invested in Apple in 2000 for $1000, you would have a made fortune, or Google in 2004..., Microsoft in 80's or Starbucks in 90's...etc, the list goes on. This is just in stocks, and real-estate is another set of discussion...

If I have $500 that I would like to invest, not touch for 20 years, and willing to lose it's value completely.
What would you think is the best value of money, and your reasoning...

Thanks for your replies!


Not enough info. Can you tell us your age, other investments, financial obligations, income? Are you asking what we think is the best value of money in general or just in this case? Do you actually have the $500 in hand?
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HurdyGurdy
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Re: Best investment for $500

Post by HurdyGurdy » Wed Feb 04, 2015 2:28 pm

Hi Paisahunt,

I am afraid we will disappoint you, if you were expecting a very specific answer to that kind of question.

Please check https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy to see where are we coming from.

Without other information, I'd say that the best use of $500 is to pay for tools or training to be even better at what you already do.

basspond
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Re: Best investment for $500

Post by basspond » Wed Feb 04, 2015 2:44 pm

Any company that is doing research into water desalination.

acejacksingh
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Re: Best investment for $500

Post by acejacksingh » Wed Feb 04, 2015 3:00 pm

Jack FFR1846 wrote:Valentine radar detector. Mine has paid 1000% in no tickets since 1987.


Haha +1 It's the best when you have rotating speed cameras all over your state :annoyed

ccieemeritus
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Re: Best investment for $500

Post by ccieemeritus » Wed Feb 04, 2015 4:48 pm

Swppx at schwab

Or any other low cost index fund where low balances are allowed.

Set dividends to reinvest, although that will eventually result in a large number of small blocks on your tax form when you sell

Mako
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Re: Best investment for $500

Post by Mako » Wed Feb 04, 2015 5:31 pm

Plastics. There's a great future in plastics. Think about it. Will you think about it?

artiegene
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Re: Best investment for $500

Post by artiegene » Wed Feb 04, 2015 5:57 pm

That's a tough one. Willing to lose it all really opens the door. What did the S&P close at today? Something along that line would be pretty solid over 20 years. Maybe 2 shares of SPY? Anything left over and it should be flowers for your spouse. That's really the best investment you'll ever have. :)

paisahunt
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Re: Best investment for $500

Post by paisahunt » Thu Feb 05, 2015 1:14 am

Great replies, wonderful comments, thoughtful responses, with lot of wisdom!!

I am 43 yrs old, has been investor in stocks mostly from the age of 19.
I picked arbitrary amount $500, primarily I meant a small amount, which I am willing to lose over 20 years, definitely not in 20 minutes at Casino, or burning with Lotto, or poker.
I try to be conservative on my 401k, and moderately aggressive on my IRA with stocks.

lack_ey
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Re: Best investment for $500

Post by lack_ey » Thu Feb 05, 2015 2:15 am

Best investment? A broad (US, ex-US, total world, etc.) stock market index fund or ETF.

Riskier but still worth holding? Maybe an emerging markets stock index fund or ETF, say VWO.

Speculative, probably not best but defensible? Maybe a Russia, oil, or gold miners fund. Or downtrodden stock of your choosing.

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msi
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Re: Best investment for $500

Post by msi » Thu Feb 05, 2015 3:34 am

GXC, which is a Chinese ETF that is more broadly diversified than the popular FXI and can invest in more share classes. Makes an excellent speculative bet for a 20 year time horizon.

Trader Joe
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Re: Best investment for $500

Post by Trader Joe » Thu Feb 05, 2015 4:46 am

A sharp dark suit, along with a nice shirt, tie and shoes for the next important business meeting.

conlius
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Re: Best investment for $500

Post by conlius » Thu Feb 05, 2015 1:43 pm

Why not build a motif of a dozen of your picks? That way you aren't banking on 1 company being successful and it will be more of a thrill than putting all your money in a single index.

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Abe
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Re: Best investment for $500

Post by Abe » Thu Feb 05, 2015 5:23 pm

Mako wrote:Plastics. There's a great future in plastics. Think about it. Will you think about it?


Dang it. I was going to do that one. :annoyed
Slow and steady wins the race.

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