Shares of a new company Vs Share of an Old company which will be more rewarding to invest in?

[Kayzzy3]

If you were to advise an upcoming investor on buying of shares, will tell the investor to put money into the shares of new upcoming company or an old already triving company??

Seeing that the young investor is still not very experienced and may make a wrong decision with choice of where to invest in.
Please what's your take?

 

[Goodday]

If you were to advise an upcoming investor on buying of shares, will tell the investor to put money into the shares of new upcoming company or an old already triving company??

Seeing that the young investor is still not very experienced and may make a wrong decision with choice of where to invest in.
Please what's your take?

I will choose investing in an existing old company's shares. This is because most of the new companies are always making losses in the beginning stage and take some much time to bring investments returns to their investors.

 

[Kayzzy3]

I will choose investing in an existing old company's shares. This is because most of the new companies are always making losses in the beginning stage and take some much time to bring investments returns to their investors.

Well I look at it from this two angles:
1. Old established companies increases dividends to shareholders but if thier shares have any issue when you have invested at high rate per share, you will loss big money.

2. Small companies with focus works hard to grow, if you invest at cheap rate though their initial dividend may be small, as the company grows you will make more money.

 

[Sariana23]

Personally, I would also tell you to make this investment in an established company with years of operation. The reason is that new companies can disappear in the short or medium term if they do not have their foundations well founded and if they are poorly managed due to lack of experience.

 

[Goodday]

Well I look at it from this two angles:
1. Old established companies increases dividends to shareholders but if thier shares have any issue when you have invested at high rate per share, you will loss big money.

2. Small companies with focus works hard to grow, if you invest at cheap rate though their initial dividend may be small, as the company grows you will make more money.

Yes, these are really the two challenges in shares investment but to me, if you choose an existing old company to invest your money in their shares, you might lose when the first challenge you mentioned occur and which mostly may not give you 100% loss as like the new company investment which easily gives 100% loss.

 

[Alexandoy]

When a new company launches the IPO (initial public offering) there is usually a hype that the stocks that are offered are easily sold. However, the performance of the company in the stock market is not proven yet unlike the old "chips" which were already in the market for many years and are still doing well. In fairness to a new company it can have a spike in the market price that your investment would earn so much. However, there is also the risk that the value of the stocks would drop abruptly.

 

[WhiteHouse]

I really don't mind either
The team is the first and most significant factor for me when concluding if to invest in the company or not. That is much more the situation with regards to beginning phase/seed ventures. I commonly search for originators that have a ton of perseverance, a remarkable, solid perspective, and a non-standard foundation. Kicking an organization off requires colossal measures of energy, center and diligence — particularly through the difficult situations and intense choices, which will occur. A non-standard foundation is a decent pointer that somebody has a special perspective, isn't content with business as usual, can face challenges, and needs to accomplish something separated.

 

[Ralphjoe]

Buying shares in a new business is a huge risk for anyone since the company hasn't proven themselves yet to be reliable and even profitable, but buying from an old business that is already established gives this reliability around them that makes people confident of them getting their dividend.

 

[Seun4luv]

It will be good and better to put your investment/shares in old company than putting your shares in New company reason been that the old company are in the system of business existing than the new one. The old company are more reliable.