Help me please

[ROADHEAD]

So I have a little over $1500 in ScottTrade that I got as a gift and I have no clue about buying stocks. Can someone give me some pointers on what to buy and what you would do if you were in my shoes. Thank you for your help.

[IdealFugacity]

VTI, Vanguard Total stock market index ETF. With $1500 you're not going to do much more that people will explain, once you get around 4, 5, 6 grand we'll talk about diversification.

disclaimer: this is the shortest, easiest answer to your question possible. you CAN diversify with this amount in ETFs, but few would find it worth it to spend the time figuring out your personal allocation strategy right now. Over the next few months as you add $$$ you will read various books you check out from the library ('investing for dummies', four pillars of investing, etc.) and Money magazine on the racks at said library, and then you'll be ready to get your hands dirty investing.

I'd put it at 10 hours of reading before you start to see the picture, 25 hours of total reading and you'll be a better - well, at least, more informed - investor than many people out there. I obviously don't mean wall street or other financial types.

[Fishhead24]

Buy one blue chip stock or another stock you like that offers a 3%+ yield.

Make damn certain the stock is not a speculative type.......pick one the is a leader in its sector(Nike, Coke, Exxon Mobil, etc., etc.).

Take the dividend checks and spend the money wisely on something else.......do not reinvest the dividends into the stock as the vast majority would suggest.

[Fishhead24]

Remember to pay taxes on your gains........

[gull]

I, like IdealFugacity, would recommend purchasing VTI.

Individual stocks are quite volatile, and an index fund allows you to capture the same risk premium and expected returns of stocks while reducing the volatility.

VTI is an extremely low-cost and well-diversified index ETF that tracks the total stock market of the US.

[ahnuld]

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do not reinvest the dividends into the stock as the vast majority would suggest.

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and then see much lower compound returns. FH explain yourself because reinvesting dividends is pretty accepted.

[DcifrThs]

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do not reinvest the dividends into the stock as the vast majority would suggest.

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and then see much lower compound returns. FH explain yourself because reinvesting dividends is pretty accepted.

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utility of spent dividends > utility of accumulated returns on reinvested dividends?

Barron

[superadvisor]

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do not reinvest the dividends into the stock as the vast majority would suggest.

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and then see much lower compound returns. FH explain yourself because reinvesting dividends is pretty accepted.

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utility of spent dividends > utility of accumulated returns on reinvested dividends?

Barron

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If you continue to add money to your portfolio over the years the total invested/"spent elsewhere" would be the same in the end, the sources would just be from different places?

[PRE]

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do not reinvest the dividends into the stock as the vast majority would suggest.

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and then see much lower compound returns. FH explain yourself because reinvesting dividends is pretty accepted.

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Even if FH was right (which he isn'), I have a problem with people giving unorthodox advice without offering a reasonable explanation. Reinvesting dividends is even more important with only one stock since you're greatly protecting yourself against any sort of price decline heading into the future.

[ROADHEAD]

wow I've never seen so many large words before lol I'll go get my google on on what some of these words mean, but thanks alot guys