Looking to buy your first stock? Look in your wallet!
No matter if it is at Target, Nike or even the gas station - each of us purchase something if not every day or damn near close. We budget to be all to ball out or bill out our paychecks!
One of my favorite lines to drop is “Consume What You Consume”. Some got what I mean while others ask me “Harpo, what that mean?”. Pretty much, what you buy or blow the most is what you could/should have in your portfolio.
If you are like me - when you step foot up in Target, you could easily blow a hunnid ($100) without blinking an eye lash or break a sweat. But take a look at how the company is performing - they are remodeling stores, increasing the pay of workers, earnings continue to do well and consumers love their asses. So, their stock is roughly around that same hunnid that you just spent. No lie, go check. The lowest their stock has been within the last 52 weeks have been $60.15. Imagine if you snatched it at that price? AND they pay our dividends (on the low end)? You swipe that pretty little red card or scan that Target Circle to only make it like you are paying yourself! Cute shit and currency can go hand and hand.
This can even go to those who consume cannabis - puff puff pass the dividends.
Apple drops products and updates like 45 drops tweets. If you can snatch up the latest iPhone or AirPods, you can grab a couple pairs of stock. No, seriously. Yes, your iPhone can give you the meanest filters, but the stock can give you funds after earnings reports.
You grab Starbucks and Dunkin’ every dog on day! For some spend in two weeks could be what you grab a share in each of them (and your name is spelled right)!
Even those who rent apartments, peep out the REITs that your property management company operates. I will talk about REITs and ETFs soon, Beloved.
If you have been following me since I start talking about flipping funds, you know how I feel about sneakers. While I have an extensive, yet growing, collection of gym shoes/sneakers - I snatch up their stock too. Like, when you buy a pair, buy a share. Boom, you can buy J’s for $190/$250 or even more on StockX, Nike stock is moving a little less than $100. Same for Yeezy’s and other popular footwalkers.
While the theory of Consume What You Consume is pretty easy to.. Consume, not all stocks of tings you buy are worth the swipe for stock. Take a look back up to the tea I gave I gave you about Target. Go head, look. I’ll wait.
When configuring if that company is worth snatching stock for:
How is the company performing? Did they loose money like WeWork or did they make a stack like Amazon? Check their earnings report like you did a Google search like that potential bae that’s in your DM.
Do they give out decent dividends or have steady growth?
How is their stock performing? Is it going up and down like a rollercoaster or steading growing? Peep their 52-week movement.
Don’t just have your entire brokerage (I love Public) account or ROTH be filled of tings of which only you buy or use, look to see how others are spending and spoiling. Habits are the pathway to where people hold their priorities at.
Here’s some homework for you:
Open your Notes app or grab a pen/paper
For the next week - take notes of what you buy or bill for the next week. From when you go to the club or when you go to Sam’s club, take note. Also, look to (consumer) spending trends of others
At that end of that week, see how they are performing. If you feel comfortable (and they are within your budget)... Swipe it. Simple
Want to learn more about picking the right stock? Grab a session with me.
Let me warn you, when you start adding this strategy into your investing you will notice that you will start not only analyzing what you buy for your budget, but also how you to earn from your purchases via buying stock.
Keep in mind, every company that you use or purchase daily will not be worth buying via the stock market. Always research before you reach for your wallet. Along with watching the flow of the market + the insight above to know when to purchase.
Also, if you have a company in mind that is outside your budget - look into fractional shares! That’s how I started building my full shares of Amazon! Bit by Bit until I grabbed all of it!
Unsure of the stock market, you could even purchase an ETF or Index Fund with that particular company in it to help cut the risk!.
Why am I tell you to start with what you consume? You already know the company. You know the product service; the research is half the ting to this. You will be more at ease to research something that you know. That will then allow you expand to other stocks, funds, etc. Leverage the hand have to build a better one. Another cheat code to learn about investing? Your retirement fund.
Don’t forget to build out your financial objectives, too!
This is how I started learning about stock nearly a decade ago. Then, I was purchasing companies that I worked for (go read this story I told). That’s another layer. Oh, you don’t like electric cars or EV? They seem to be a great sector to invest in. “Consume What You Consume” starts with you and can expand outward to various degrees of separation.
So, do you research and unlock your first steps to purchasing your first stock! Oh, when you do — Congratulations! I’m proud of you! Let’s go!