Cents and Sensibility
Cents and Sensibility
Some investors find the thought of investing in the stocks of individual companies somewhat intimidating. Take stock of your routine
for investment opportunitiesAfter all, how do you possibly decide which companies, out of literally thousands, to choose?
A good place to start is by taking a closer look at the products and services you use in your own daily routine.
Consider a typical day in the life of an average American.
At 6 a.m., the alarm clock rings, interrupting your peaceful slumber.
You reluctantly roll out of bed and head for the bathroom, where you turn on the light (Utilicorp United), brush your teeth (Colgate-Palmolive) and shower (American Water Works).
On the way to work, your cellular phone rings (Nokia and Sprint PCS). It was your spouse reminding you to stop and pick up your new window blinds (Home Depot).
You also needed to go to the store (Wal-Mart) and grab some Coppertone (Schering-Plough) for your vacation next week.
At work, you turn on your computer (Dell Computer), then return a few phone calls (SBC Communications).
Before you know it, your watch (May Department Stores) indicates it's time for lunch. You stop by the ATM machine (Bank of America), then grab a quick hamburger (McDonald's) and Coke (Coca-Cola).
On your way home from work that night, the cellular phone (Nokia and Sprint PCS) rings. It's your spouse, reminding you that you need to stop by the pharmacy (Longs Drug Stores) for a prescription (Johnson and Johnson).
At home that night, you start a load of laundry (General Electric) while dinner cooks. Later that evening, while enjoying an ice-cold Pepsi (Pepsico), you and your spouse discuss what color to paint the living room and the possibility of purchasing some new furniture (Leggett & Platt).
These are typical of the goods and services average Americans use every day.
Many of these products are provided by companies whose stocks can be purchased publicly.
Of course, your loyalty to a particular product doesn't guarantee that company's success, but it does provide a good starting point in your search for an attractive stock investment.
By discussing the company with an investment professional, you can determine if the stock provides an attractive investment opportunity or if another company might better suit your investment needs.
Guy Steele is a financial planner and head
of the Pali Palms office of Edward Jones. Send
planning and investing questions to him at 970
N. Kalaheo Ave., Suite C-210, Kailua, HI, 96734,
or by email at: gsteele2@pixi.com