Four Places To Find Great Stocks To Invest In

by Hank Coleman

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

Your Desk

Apple iPad2Ideas 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.

Your Kitchen

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.

The Mall

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.

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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.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 592 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 6 comments… read them below or add one }

Edward Antrobus

“Dr. Pepper is an agnostic beverage. Is it root beer? Is it cola? Nobody knows.” Ah, I love South Park.

Aside from my general aversion to stock investing; I’m not a very trendy person. The products in and around my life are already pretty saturated in the market and I wouldn’t expect any gain above the market at large.

Reply

Mark Branson

Hi Hank – An interesting post – I like the idea of investing in what you like, use and consume, although I also think that you should be able to know when a product is a good investment which is something that I must admit that I leave to my financial planner.

Left up to me I’m sure that I’d go backwards instead of forwards.

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Hank

The problem though could be that your financial planner could be as out of touch as some financial anlaysts who miss trends because they are in tune with trends going on around them.

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Mid Life Miser

Great idea on where to find ideas to invest. However, this is only step one before investing any actual money in that company. As you know, there are a lot of companies whose products we use on a daily basis that really don’t really make good investments. I couldn’t agree more….do you homework before investing hard earned cash!

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Hank

That’s definitely a good point to remember. Thanks!

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Marie at FamilyMoneyValues

Invest in what you know works but you have to track your investments. Years ago my Mom bought K-mart stock. She said she might as well own some as she spent so much money there. She bought and held when it might have been better to switch over to Walmart…..

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