/biz/ - Business & Finance

Hello,

COuld you please advise what books could be helpful regarding investing in stock market?

What is good to explain how stock market and investing works yo a total beginner and noob.

I would suggest you READ A BOOK.

>>1734665
it all depends on how diversified you are.

For example, lets say you have 60% of your portfolio diversified between an index fund, an international index fund, and a bond fund. That leaves 40% to work with. Now lets say you put 20% into REIT and leave all those to reinvest in dividends.

That leaves 20% left over. You can further put more into the same, but if you feel the REIT asset class is too high in your portfolio (which it can be, most suggest 10-15% then you can have those dividends returned to reinvest elsewhere.

Myself I am trying to reach the point where I reinvest most dividends except for where the individual parts of the portfolio is a bit too high of a mix, and reinvest those into my own stock choices.

Because 60% is already diversified to a great amount and an additional 15% to 20% is in a different asset class, I can rebalance as I see fit. Also worth considering. Some discount brokers offer benefits for direct dividend reinvestment, like 10% reduction on stock purchase price so keep that in mind.

In my choices I decided that complete automation of the investing process is too boring at my current age so I manage about 10% myself for fun in dividend stocks I can pick and choose.