One of the biggest complaints that I often hear is that people do not know which stocks to invest their hard earned money in. Don’t get me wrong. Most people should be investing in index mutual funds, Roth IRAs, and their company’s 401k retirement plan, but there is also something to be said about investing in shares of individual common stocks. I routinely invest only 5% to 10% of my total investment portfolio in individual stocks in order to be properly diversified. But, where can you find stocks of quality companies to invest in? Here are a few ideas…
Four Places To Find Great Stocks To Invest In
Ideas for stocks to invest in are all around you. I routinely can look on my desk and the desks of my coworkers to find the products of great, quality companies to invest in. For example, I currently own several Dell computers both at work and in my home office. I also own several iPods, an Apple iPad2, and I’m currently saving money in a savings account that I nicknamed MacBook Air as well.
You probably already know that I’m a huge Dr. Pepper fan. I’ve personally owned the stock for well over a year when Dr. Pepper Snapple Group spun off from Cadbury Schweppes. This is just one stock of a drink or food group that I own because I love their products. Coca-Cola is another example of a stock that I own because I drink their sodas like their going out of style. Warren Buffett hit the nail on the head when he said that you should invest in what you know. You know what you buy, and that should be one of the biggest driving forces in your stock purchasing decisions. Do you like the company? Do you like the product? You may have a winning stock on your hand then.
If you simply paid attention at the mall, then you would have had a lot of investing ideas. One of the keys to great investing is spotting the next trend before the suits on Wall Street. Have you seen the explosion of True Religion jeans? If you had, then you would have been in on one of the great growth stocks of the past year or so.
Your Children’s Rooms
I’m a huge fan of toys. I guess that what people say is true that some of us never grow up. But, if you look at some of the toys that our children are dying for us to buy them, then you will see great investing opportunities as well. Does Hasbro make the hot toy that your child has to have this Christmas? Is it Mattel that makes it? Or, is it some other toy manufacturer all together? These are the types of trends that you should be looking at when trying to find stocks to purchase.
You can’t say that you don’t know what stocks of companies to invest in. If that is the case, then you simply are not paying attention to your surroundings. There are ideas everywhere. You just have to be in tuned with them.
Note: This does not constitute specific investment advice. You should do your own research and find companies that are right for you. Or, you should seek out the experience of a qualified financial planner or stockbroker to help you find the right stocks to pick. But, I fully believe that you can pick your own stocks and mutual funds with the right amount of research, passion, and studying.