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Company Investment: Stock Picker and Blue Chip Stocks
There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.
The advantage is that if the company allows a private investor to purchase stocks directly this would allow you to set up a pay check withdrawal each pay period for the purposes of the stock plan. There are various advisory services that can assist you in locating companies that offer these direct stock purchase plans. I would suggest that you find companies you are interested in a make an inquiry with investor relations.
If you have a solid company that has shown solid performance this may be a good option for investing. The only thing you have to lose is your time. The time it takes in gathering the information has a big payoff. It will save you commission fees and provide you with a long term relationship with your favorite company.
Using your cupboard as a stock picker
Company brand products did not become staples in most homes because of clever packaging and cute commercials. The brands we as consumers rely on are on shopping list because the particular product is tried and true to its word. The household purchaser can make or break a product. The true clout of the American consumer is not to be underestimated in the Stock Market.
A cautionary note is that even the best company may have a down year. The reasons could be management changes, and other economic pressures. The product is still good, but the internal structure of the company needs a quick fix. In these circumstances make a decision whether you want to weather the storm or wait until the company gets its act together. Sometimes the stormy days of a company can be a buying opportunity.
The blue chip stocks
Blue Chip Stocks are quality stocks that have a proven track record. A Blue Chip stock is like a member of the family in the American pastoral landscape. The Blue Chip stock makes toilet paper, laundry soap, aluminum, steel , washing machines and just about every well known brand we used every day The Blue Chip stock is Bank of America, U.S. Steel, Proctor & Gamble and others we think of as being our companies.
There are index funds of Blue Chip stocks that can be bought through a financial brokerage house. There are mutual funds that are designated as Blue Chip Funds in most family of funds offered in all of the major mutual funds companies. There is even a mutual fund company that offers a spider fund comprised of Blue Chip stocks that is similar to the S& P 500.
The variety of ways to invest in Blue Chip stocks is endless, spiders, index funds, and hybrids in between. There are option contracts and some tricky investments that only a really savvy trader can advise you about.
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