Online brokers

[jamesfnb]

See, that's the thing - you don't invest in one DRIP precisely for the ENRON reason. I'm invested in 7-8 different companies, and eventually I plan on investing monthly on a rotating basis. I'm not exactly sure how mutual funds work, but with DRIPs, if you sense something "not right" with the company, you can sell off your shares to that specific company. I'm not sure you can do that with a mutual fund without getting out of the entire thing.

It is great that you diversify by not investing in only one company.

Mutual Funds are ideal in my opinion as with one investment I can invest in 100+ different companies. The Pro's running the fund forget more in a day than I know in a week so there is no need to worry about one company here or one company there.

I doubt Enron offered DRPs as very few companies do anymore (approximately 100 or so). So, another advantage of mutual funds is you can access thousands of companies.

I don't mean to badmouth DRPs as they are a good thing to do and I applaud you for remaining consistent with it. I just prefer more diversification and professional management that comes with mutual funds.

 

[brianhos]

Penny stocks can pay off big, but it is like buying a lottery ticket. Usually they are headed for nothing. In general I would say avoid them.

I like to buy thousands of $$$$ in penny stocks and then send out emails telling everyone how this company is the next big thing. I make so much money that way.