Thread: Investing 102
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Old 09-20-2013, 08:51 PM
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GregWeld GregWeld is offline
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Quote:
Originally Posted by Vortech404 View Post
I have a question?

Trying to figure out what is better. I understand buy in company's you
like and shop at buy lets use this as an example.

Lets use a $6000 dollar figure and you like all 3 but can only pick 1.

60 shares of MCD vs 150 shares of Coke vs 77 shares of HD .
The yearly dividends of MCD $194, KO $168 and $120 for HD.

Looks like the Coke would win out because of the more shares? cheaper so the dividends buy more shares.But HD
killed them on total return? How do you choose?

What is the biggest factor in narrowing down a stock?

Thanks John



Good questions John.... and here's my question for you. Why would you only have to buy ONE company? All three are great long term investments so why wouldn't you just buy $2000 of each one?


And here's the answer to your question.... Nobody can tell you which one you should buy. Which one (if you can't do all three) would you like to own?

That is also why you DIVERSIFY.... you want to own a bunch of different companies... in different sectors... i.e. industrial - financial - retail - etc.
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