Beginner how to make use of invesment funds on US Market? 25k warfunds 1.5k monthly investment savings?

Microsoft stock price ~$205 is quite attractive now. I'd think you can go for it by investing some. After all, great companies are hard to come by. As for the other tech stocks, I didn't take a close look.

Generally, the max. you want to allocate per stock is $5,000 ($25k/5 stocks). So you can spread out your buying in 3-5 tranches e.g. Tranche 1 - $2,000, Tranche 2 - $2,000, Tranche 3 - $1,000. Up to you how you want to spilt.

As these are strong companies that grow, I don't see how you could sit on the sidelines. Because we can't predict what type of opportunity will come along. 🤷‍♀️

Time in the market is better than timing it~ Anyway, you're going to hold long-term.

Hi there!

Let me assume you have made up your mind about investing in the US market, and specifically the five companies you have mentioned.

At one glance, you are able to do a lump sum investment of up to $25,000 in all five stocks.
Pros: If you manage to buy each stock at one of their low/lowest price points, you would be able to maximise your returns (as long as the stocks go higher).
Cons: If you time it wrong and buy them at a higher/highest price point, you might not see meaningful returns until in the “longer run”.
Suitability: By adopting this method, you need to think about the worst case scenario which is to be able to wait out if you don’t wanna realise your losses in case prices experience a sustained downtrend or nosedive shortly after you invest. If you have a longer time horizon, you can consider dividing your war-chest into few tranches and investing whenever there is a dip (e.g. dip of >20-30%). Of course, do determine your own (set of) criteria.

With $1,500 each month to invest, you might find it hard to fully invest the full amount and without incurring significant brokerage charges, unless you have a platform that allows you to invest regularly directly into the five companies’ shares (if there is/are, please let me know). E.g. $10 for every buy/sell transaction on FSMOne, Apple is about $110/share and you’ll only be able to buy 13 shares and be left with some spare change. If you’re ok with that, you can still manually buy a stock each month, or you might be better off accumulating about 2-3 months savings before you hit the Buy button. (I won’t discuss DCA-ing on stocks because many things can go wrong with one stock but let me know if you are keen on DCA-ing on an index or tech ETF)

A time horizon of 5 years seems alright to me but you might have to be prepared to extend it should there be a substantial correction 4-5 years later (again, just prepping yourself for the worst case possible).

Whether Microsoft is undervalued or not right now, it really depends based on your analysis and the assumptions you use.

You’ll also have to determine beforehand, how high is “too high”?

Just make sure to execute whatever you have planned to gain more insights on your strategy and avoid deviations as much as possible.

I hope my thought process helps you in your investing journey.