Some investors find the thought of investing in the stocks of individual companies somewhat 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 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 (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 (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 finish your second cup of coffee (Starbucks), it's time for lunch. You stop by the ATM machine (Bank of America) then grab a quick hamburger and Pepsi (Pepsico).
On your way home from work that night, the cellular phone rings. It's your spouse, reminding you that you need to stop by the pharmacy (Walgreen Co.) for a prescription (Johnson and Johnson).
At home that night, you start a load of laundry (Clorox) while dinner cooks. Later that evening, 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.
