Little Man in the Big Market
It could be the right time for people who shied away from the stock market to get their feet wet – i.e. not much money, not much risk.
Everyone’s got their two cents, and this is mine.
I bought stock for the first time in my life just recently. I’m 25, single, no kids, and am of modest upbringing and means. The economy is hurting, but just about everyone agrees that, regardless of what the government does about it, we will sooner or later recover. Stock prices plummeted, and I decided that it was a good time to invest in companies that I thought would weather the storm. My first pick: Ford.
Ford (F): I truly believe that the US will always have a domestic car company, and out of the Big Three, Ford is in the best shape. I bought in at $2.00 a share, saw it drop a little lower, and now it’s on the upswing. And I didn’t put in very much money – I have rent and bills; it was $100. But I think Ford will be doing much better in 10 years, and my $100 could be $1000 or more by then.
“Invest in what you know,” my mother told me a few years ago. I go through a lot of paper products, so I looked into who makes them. Because you always need tissues and toilet paper, and women always need tampons. Even in a recession, you can’t get around buying those items. In my case, the manufacturer is the Kimberly Clark Corporation.
Kimberly Clark Corporation (KMB): You can’t get away from the bare necessities, and thats what these guys make. I haven’t bought the stock yet, but it has been lingering around the $45 range recently. If you look up their 5-year stock price graph, you’ll see that this is basically the bottom of the barrel for them. The stock price is a bit up there, but they do pay out pretty significant dividends. This purchase is probably a little more risky than Ford, but I’m gonna put together a solid $400 next month and see where that gets me.
That’s as far into the stock market as I have gotten. I’m not a big time investor; most people aren’t. But I think most people should be investing, especially now when it could pay off significantly later on. Do a little research, and remember that the person who cares most about your finances is YOU: trust your own judgment.
