Question and Answer Continues:... 1). Do you recommend people to buy stocks? How should the untrained person go about picking the right company from which to buy stocks? Are there times people should stay away from buying stocks?... Dr. John Kalu OsiriClinical Professor of Entrepreneurship at Washington State University. Thank you Dr. These are very interesting questions. Yes I do recommend that people buy stock. I believe its a very viable investment option. I also recommend that you acquire knowledge of the stock market or engage a professional. But its always good to know. An untrained person in the Stock market should engage the services of a professional stockbroker for guidance because its a technical market where Knowledge is key. Money is constantly made in the stock market even in down times see page 40 of financial independence. While some people might be losing money, others might be gaining. But if you follow the market closely, you will see the up and down swings and you are better off getting in when it swings down and ride with it upwards. Financial Independence. 2). Thanks for your response, sir. My follow-up question is this: How do youvknow a good investment broker? It appears some of them (not all) just want to take your money and dump it somewhere in order to make a commission. Also, whats your preference between pure company stocks and mutual funds (mixed bag of different company stocks)... Dr. John Kalu Osiri. I think its always better to study your brokers before placing your trust on them. Can you access people they have serviced? Whats their opinion about them? Whats their service and relationship policy? Who are the key people behind the brokerage firm? Etc. In Nigeria, I prefer the stock brokers affiliated with financial institutions and with well established structures to the one man out fit. Finally, I like spread risks. I will therefore recommend the mixed bag of different company stocks. Again, thank you for these thoughtful questions. Financial Independence
Posted on: Fri, 14 Mar 2014 04:02:39 +0000