Investing in What You Know
There is no such thing as an ideal investment. To invest, we must balance our
desires and needs with the attributes of the investments available to us.
A common concern of investors is that they are not sure what stock to buy.
Perhaps they don’t know what a particular company does (or makes), or are not
comfortable with the future prospects of that company and its market potential.
An easy way to start is to assess your own buying habits. If you are buying a
quality product or service you are already comfortable with that company and
feel a certain allegiance or brand-loyalty to the company. So, if you are
looking for investment ideas, ask yourself a couple of questions.
1. What kind of car do you drive? Ford (F), General Motors (GM) and
many other auto manufactures (national and international) are publicly traded
and the stock can be purchased through your MyStockFund account.
2. What is your favorite beverage? From Coca-Cola (KO), Pepsi (PEP),
Anheuser Busch (BUD) and many others, there is a litany of publicly traded
soft-drink or beverage companies.
3. Who makes your phone, computer, cell phone, PDA? Again, there is
a good chance that these companies are publicly traded.
4. What restaurants (chains) do you frequent?
5. What airline do you prefer?
6. What toys do your children play with?
7. What cleaning detergent do you use?
As you can see, the choices (and opportunities) are virtually unlimited. So, if
you are not sure where to start, as yourself what you already like. Chances
are, your investment choice is already part of your life.