This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.
Some investors find the thought of investing in the stocks of individual companies somewhat intimidating. After all, how do you possibly decide which companies, out of literally thousands, to choose?
A good place to start is by taking a closer look at the products and services you use in your own daily routine. Consider a typical day in the life of an average American.
At 6 a.m., the alarm clock rings, interrupting your peaceful slumber. You reluctantly roll out of bed and head for the bathroom, where you turn on the light (Entergy Corp.), shave (Gillette) and shower (American Water Works).
Next you get dressed (Dillard's Department Store) and then treat yourself to a hearty breakfast of eggs and Jimmy Dean sausage (Sara Lee). After enjoying a second cup of Maxwell House coffee (Phillip Morris), you kiss your spouse goodbye, hop in your Taurus (Ford Motor Co.) and head for work.
At work, you turn on your computer (Hewlett-Packard) then return a few phone calls (Baby Bell telephone companies). Before you know it, your watch (May Department Stores) indicates it's time for lunch. You telephone (AT&T) your friend to confirm your lunch date, stop by the ATM machine (Bank One Corp.), then grab a quick hamburger (McDonald's) and Coke (Coca-Cola).
On your way home from work that night, the cellular phone (ALLTEL and Motorola) rings. It's your spouse reminding you that because the second car is getting a new starter (Genuine Parts Co.), you need to run a few errands on your way home. You stop by Toys 'R' Us to pick up a "Little Tykes" slide (Rubbermaid) for your son's birthday and by the pharmacy (Walgreen Co.) for a prescription and some Coppertone sunscreen (Schering Plough) for next week's vacation.
At home that night, you start a load of laundry (Whirlpool) while your spouse cooks dinner. Later that evening, while enjoying an ice-cold Pepsi (Pepsico), you and your spouse discuss what color to paint (Sherwin-Williams) the living room and the possibility of purchasing some new furniture (JCPenney).
These are typical of the goods and services average Americans use every day. Many of these products are provided by companies whose stocks can be purchased publicly. Of course, your loyalty to a particular product doesn't guarantee that company's success, but it does provide a good starting point in your search for an attractive stock investment. By discussing the company with an investment professional, you can determine if the stock provides an attractive investment opportunity or if another company might better suit your investment needs.
The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.
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