What stocks should I buy? Lesson 101

The question I get asked many times is the one of which stocks should I buy, or which stocks will make me money?

The answer is, that you should look at what you know about and like. For those that are new to investing I ask them to look around their neighborhood and see which companies and stores they walk into to spend money. Those are the companies they know, and the stocks of those companies are good starting places to begin considering to invest money into.

Look at the places where you shop; Costco, Target, Sears, Kmart, Big Lots, J.C. Penney, Avon, and many more. Now look at the products on the shelves, and read the name of the companies that manufacture them; those are companies you may be interested in looking at to invest into.

The products in our home are places to start looking. The things we buy for ourselves we believe are the best for our money, so maybe the makers of our things are quality companies to look at for investing.

Look at the brand name on your toilet, light bulbs, television, washer, dryer, stereo system components and perhaps the maker of your furniture. These are companies in investigate.

The medicine chest will have products we trust made by companies we trust. Look at who makes your band-aids, and medicines. Now that we are here, how about looking at the pharmacy that provides your prescriptions? Is it CVS, Walgreens, or RiteAid? These are companies to consider.

Let's not forget the toys your children play with, many of the makers are large companies like, Hasbro and Mattel.

We can look at your car and get ideas. Who makes the tires, radio, seat covers, engine parts, and paint that go into making a car? The companies that build cars are another idea, Toyota, Honda, TaTa Motors, or maybe a local company like Ford Motor Company.

For those that work on their cars, AutoZone, Pep Boys, Kragen Auto Parts or similar are good starting points. Maybe the products in the store are of interest. The makers of wiper blades, starter motors, alternators, intake and exhaust manifolds, steering wheels, batteries, tires and many of the other products on the shelves are great considerations.

Perhaps the makers of products that lubricate, clean, or seal leaks are companies you like and would be happy investing money in.

Which gas station do you like? Conoco, Shell/ Tosoro, Arco, or Valero, Exxon/Mobil, and others.

Your garage has many more ideas for companies to invest your time to look at. The maker of your lawnmower and edger. Briggs and Stratton make the engines. Black and Decker power tools, another place to look for investing ideas. Keep looking, I'll bet you see many more products that are made by companies you might invest time and money in.

The companies you look at for investing, must have meaning to you. You should be able to tell a friend what the company does to make its money. You don't need to know every detail, but you should understand what they do.

There are many companies around us in the products they make, or the services we pay for.

We know who makes good products and bad quality products and this information is what we use to decide what company is worth our time to research, and finally our money to invest into.

Good Investing,

Bruce Cortez

http://www.youcontrolinvesting.com/