If you had a million dollars?

[abd]

If you had a million dollars, what stock would you invest it in?

Mine would probably be

Westpac - $450,000
Woolworths - $450,000
Fortesue - $50,000
Westfield - $50,000

[gerryonline]

Hrm... interesting.. can you explain why you chose those stocks?

[Brendan]

I am not sure I would throw it all in the stock market.. you could buy some good properties and passive businesses with $1mill.

I would say diversify, throw some cash in some good asset classes, like Property, Business, and Stocks.

as the old saying goes.. don't put all your eggs in one basket.

[abd]

Ha ha ha, like warren buffet said, Diversification is only required when investors do not understand what they are doing.

Good stocks are good stocks. Westpac and Woolworths in my opinion are strong stocks that will usually perform well and pay good dividends

Fortescue could possible be another sleeping giant and as for Westfield, they do smart business.

But you could also invest that million into a high interest bank account and do quite well two ;)

As they say, making your first million in cash is the hardest. The next million is easy.

[justinsigns]

I am unsure of stock so I would invest in business and put some in an interest account.

[JamesGG]

Assuming we're going purely with shares...

I'd split it. $750k into five high-yielding blue chips. Relatively safe income, particularly if I don't care too much what the share price is doing.

The remainder, day-trading in mid-caps. Fun fun :-)


I do agree with comments about diversification. To a point. The only difference between gambling and investing, IMO, is how much you know.

[one]

Ha ha ha, like warren buffet said, Diversification is only required when investors do not understand what they are doing.

Yeah, but Buffet's portfolio is very diversified!

Diversification is super important, whether it's diversification at a micro level (i.e. diversifying the financials sector of your share portfolio across a number of banks and insurers), through to a much higher level such as diversifying your overall investments so that everything you have isn't locked up in your business (i.e. some in the share market, some in property, some in fixed interest etc.)

No matter how much you think you know about a particular company (including your own), a particular sector, a residential development or whatever else, there is always the possibility that a factor outside of your control can wipe out your investment overnight. If you can afford to lose the lot, then sure, bet the whole lot on one investment. But if you can't afford to lose everything, then diversification is an absolute must.

Shane :)