Wednesday, February 22, 2006

Stock Picking

He said

When it comes to stock market, i do feel like camel (as someone called me :). The fact that there is too much information and views on what stocks are good. Well just not stocks alone, mutual funds, options, etc. I have developed a fondness for Mutual funds (yeah they have limitations like expense ratio and higher entry barrier), but i think no-load index funds and retirement target funds are really good. My plan (about to start from this year mid) is to keep my 401k on retirement target fund, keep my Roth IRA and personal investments in Vanguard and Fidelity no-load mutual funds. I also intend to play in the stock market (US and indian) with small amounts of sum like $200 per month.

So then comes the issue of stock picking. i have decided to play it safe by watching a few stocks, the stocks i am watching include MSFT, Google (just for fun), AMGN and Mittal steel. in the end i might pick a few shares in steel and pharma industry. I am keeping track of steel, banking and airline industry in the indian market. I feel the indian market is getting pricey. I might pick a few shares in all these industries. I will detail the picks along with the reason when i conclude the transactions.

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