People are always wondering which stocks to buy. People will get a hundred different answers to that question. Most financial advisers will encourage you to buy mutual funds. Then there’s the problem with picking a fund full of companies that you will profit from. One good common sense bit of advice is to make investments in companies you use. If you’re using those products, there’s a good chance many others are, too. In that case, the company should be profitable, and your stock should stay valuable.
Many people think the best and safest investments are in Walmart, Home Depot, Coca Cola, and Time Warner. The reasoning is that these are everyday products that everyone uses. They have very strong business models. In many places, Walmart is the only store in town. It serves as everything from automotive shop to clothing store. In a lagging economy, it is the store of choice because it has low prices. While the rest of the economy is sagging, Walmart is doing good. The same goes for Home Depot. When money is tight, people do their home repairs and landscaping themselves. A good freeze will wipe out the plumbing department at a home depot. Coke is king. From Coke to Sprite to diet drinks and even water, this company shows no signs of ever being a bad business model. Although Time Warner seems to always be buying and selling pieces of itself, it always survives. Investing in this company is a pretty stable financial move.
Just think about your own spending patterns and start investments in that way.