Some investors find the thought of investing in the stocks of companies intimidating. After 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 daily routine. Consider a day in the life of an average American.
At 6 a.m., the alarm clock rings. You roll out of bed and head for the bathroom, where you turn on the light (Emerson Electric) and take a shower (Johnson & Johnson).
On the way to work, your cellular phone rings. 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 (Walmart) and grab some Coppertone (Schering-Plough) for your vacation.
At work, you turn on your computer (Dell), then return a few phone calls (SBC Communications). Before you finish your cup of coffee (Starbucks), it’s time for lunch. You stop by the ATM machine (Bank of America) then grab a soda (Pepsico).
On your way home, you stop by the pharmacy (Walgreens).
At home that night, you start a load of laundry (Clorox). Later, you and your spouse discuss some new furniture (Leggett & Platt).
These are typical of the goods and services average people use every day. Many of these products are provided by companies whose stocks can be purchased publicly.
Of course, loyalty to a particular product doesn’t guarantee a company’s success, but it does provide a good starting point in your search for a stock investment.
Mike Blaes is a licensed financial adviser with Edward Jones. For more information, call (928) 476-6427.