Im Still A Beginner to The Stock Market And Everything i Had Posted A Question Earlier about investing in SIRI but the answers given to me have helped me out tremendously into investing in Real Estate. I'm 15 and i would like to buy shares and have this for 2-3 years and i plan to graduate high school and go to College..i have 250 dollars as a budget..in the stock market its very little but im trying to do my best to invest in the next 2-3 years and make the best of my budget to later buy myself a car or use it for college funds.My Spotlight is reasonably on Real estate and i was looking at this stock that was referred to by a answerer by my previous question.
It is like evaluating apples to oranges. If you purchase a residence and hire it you're now within the landlord industry, this is a process, a minimum of aspect-time. If you put money into shares you're a passive investor, and no paintings is needed.
Easy part first. You can calculate the number of shares you can afford as shares = ( AmountToInvest - Commission ) / pricePerShare There are many ways to invest in Real Estate via the stock market. There are homebuilder stocks, lumber companies, real estate management companies. There is a whole industry called REITs (Real Estate Investment Trusts), with subindustries for office buildings, malls, apartments, storage, etc. You could choose an individual REIT stock (example: CBL), an ETF of REITs (example: VNQ) or a mutual fund that invests in REITs (example: VGSIX). As you continue to learn about investing, you will see that there is a great focus on earnings and earnings per share (EPS). For REIT analysis, substitute FFO (Funds From Operations) for earnings. That is the basis that sell-side analysts use and how REIT estimates are expressed. A great source for info on REIT investing is NAREIT. For mutual funds, look at Morningstar.
