Invest in businesses, not ‘Wall Street’ - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Invest in businesses, not ‘Wall Street’

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Friday, May 25, 2012 1:45 pm

If you’re an investor, you might be shaking your head in dismay after looking at your recent brokerage statements. In fact, you might even be thinking about giving up on Wall Street altogether. But before you do, consider the following story.

Two typical American children, Mary and Michael, begin their day with a hearty breakfast of oatmeal produced by Quaker Oats, a subsidiary of PepsiCo, based in Purchase, N.Y. At school, they work on a computer, using a Windows operating system produced by Microsoft, based in Redmond, Wash. Upon returning home, they do their homework under a lamp containing light bulbs produced by General Electric, headquartered in Fairfield, Conn. That night, their parents, pressed for time, take them to McDonald’s, whose corporate office is in Oak Brook, Ill., and the children eat Big Macs and drink Cokes, produced by Coca-Cola, based in Atlanta, Ga. Before going to bed, Michael and Mary wash up with Ivory Soap, produced by Proctor & Gamble, based in Cincinnati, Ohio, and are thrilled to learn their parents are going to take them to Walt Disney World, owned by The Walt Disney Company, which operates out of Burbank, Calif.

You get the picture. None of these businesses are on Wall Street — and when you invest in them, you’re not investing in “Wall Street,” which is really just a short-hand term for our system of trading stocks. Unfortunately, many people seem to think they are actually investing in the system itself, rather than in individual businesses, so when they repeatedly hear that “it’s been a wild day on Wall Street,” they start believing that the very act of investing has become too risky for them. But that’s not the case. As you can tell by their products, the companies mentioned above are likely to be around for a long time — or at least until people stop using computers, washing their hands and eating hamburgers.

Does that mean that the stock prices of these types of companies will just keep climbing? Of course not. These businesses, like all businesses, will go through good and bad periods, and their stock prices will reflect these ups and downs.

But here’s the key point: Barring an unforeseen calamity of epic proportions, there will be always be businesses in which you can invest. And if you buy quality companies, and hold them for the long term, you’re going to increase your chances for success. So when you’re considering your investment strategy, don’t worry about today’s turbulence on “Wall Street.” Instead, look at tomorrow’s prospects for the companies in which you’re interested. Are their products competitive? Do they belong to an industry that is on the ascent or the decline? Do they have good management teams? Have they been consistently profitable over the years? By answering these and other key questions, you should be able to get a good sense of whether a stock is a good investment candidate.

By thinking more about the individual businesses in which you might invest, and less about “Wall Street,” you can become a more focused investor. And, over the long term, that focus can pay off for you.

• This article was written by Edward Jones for Cyndi Newburn, an Edward Jones financial advisor in Ahwatukee Foothills. Reach her at (480) 460-1149.

More about

More about

More about

  • Discuss

Gay Marriage, a Year Later

One year ago, the Supreme Court made same-sex marriage legal nationwide. We asked readers who were married shortly after the ruling to reflect…

Published: June 30, 2016 - 6:42 am @ http://www.nytimes.com/interactive/2016/06/28/us/s…

Arizona pot legalization supporters to submit petition

PHOENIX - Supporters of legalizing marijuana in Arizona are expected to submit enough signatures for their proposal to qualify for the ballot …

Published: June 30, 2016 - 6:23 am @ http://www.abc15.com/news/region-phoenix-metro/cen…

Gun Control Advocates Are Planning To Target Three Vulnerable Pro-Gun Senators

After a 15-hour filibuster in the Senate and a 25-hour sit-in in the House will likely fail to produce meaningful gun reform after the Orlando…

Published: June 30, 2016 - 5:42 am @ http://thinkprogress.org/politics/2016/06/30/37943…

Declassified CIA file: detainee would probably have cooperated before torture

Medical personnel who aided in the CIA’s first simulated drowning found that the detainee who endured it was probably willing to cooperate bef…

Published: June 30, 2016 - 5:40 am @ https://www.theguardian.com/law/2016/jun/14/cia-wa…

FLW Fishing: Articles

An unweighted Yamamoto Senko, rigged on a wide-gap hook, has caught a lot of bass for me. Most often, I use it where the fish have been hammer…

Published: June 30, 2016 - 4:22 am @ http://www.flwfishing.com/tips/2015-11-11-fishing-…

Attorney General Lynch has private meeting with Bill Clinton

Attorney General Loretta Lynch met privately with former President Bill Clinton in Arizona on Tuesday, but Ms. Lynch told reporters that the t…

Published: June 30, 2016 - 3:41 am @ http://www.foxnews.com/politics/2016/06/29/attorne…

Legal marijuana heading for Arizona vote

PHOENIX - Advocates for legalizing marijuana in Arizona say they will file more than 260,000 petition signatures Thursday with the secretary o…

Published: June 29, 2016 - 10:39 pm @ http://www.12news.com/news/politics/legal-marijuan…

Sungevity set to go public in merger with Easterly

Technology solutions provider Sungevity and Easterly Acquisition Corp. have entered into a definitive merger agreement that will see Sungevity…

Published: June 29, 2016 - 9:07 pm @ http://www.pv-tech.org/news/sungevity-set-to-go-pu…

BREAKING: ISIS Terrorists Used Obama's 'Fast and Furious' Gun During Paris Attack!

On the evening of 13 November 2015, ISIS linked terrorists slaughtered 130 people in a series of coordinated attacks in Paris. The Islamists m…

Published: June 29, 2016 - 8:38 pm @ http://www.thegatewaypundit.com/2016/06/breaking-i…

Pinal County Sheriff's Office

Pinal County Sheriff's Office is on Facebook.To connect with Pinal County Sheriff's Office, sign up for Facebook today.Sign UpLog In@PinalCoun…

Published: June 29, 2016 - 7:47 pm @ https://www.facebook.com/PinalCountySO/posts/10560…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…