Inspiration from the Oddest Places
The world is made up of a myriad of investors who own an immeasurable number of stocks and bonds. They often choose them for arbitrary reasons. They inherited a portfolio, they invest at work from a finite list of choices, they got a hot tip, or they threw a dart at the business section of the newspaper (ha!). Since not every investor is successful, perhaps a different selection method is warranted. I suggest using ethical and moral criteria. These days there are many options that qualify as companies want to capture this growing market. You can’t go wrong if you approach investing in this way since it makes you feel better.
As the options expand, I become more and more perplexed and have trouble making decisions. I try to read about companies and their mission statements looking for certain buzz words like ecological, green, the environment, etc. Recently I hit on a company that makes floating tubes for use on a river. I was impressed with the words of the CEO and his concern for protecting wilderness areas. He supported many clean up campaigns and tree planting projects. This was going to be an easy choice. The company had what it takes to appeal to my need to invest ethically. So I bought the stock. After a few months it went up. I didn’t expect such immediate results. I celebrated by taking an inflating floating tube to the nearest river. I spent a day contemplating my luck. I decided to buy more stock. I get inspiration from the oddest places and a river is not unusual for me.
I started to grow my nest egg as I now had a portfolio of special stocks and bonds that were selected for moral and ethical reasons. Brokers say always diversify and I have within this larger category. I have oil stocks and transportation stocks and entertainment stocks. I suppose that is diversification. The fields are different. If you buy just one stock, it doesn’t come close. If that industry tanks, you are going to have losses. If you have many industries and one declines, you always have the others to rise. It is basic sensible investing. So when I added the water recreation stock that included inflatable tubes, I already was diversified enough for this to be a safe choice. Observing the many tube riders on the river, I knew it was a popular commodity. I think it best to pick investments to which you can relate and enjoy following. This way you have a personal connection to your choices. There are worse reasons for buying stocks. Given the thousands out there, you need a criterion to narrow it down. If you have a hunch or get inspiration from somewhere, why not go with your gut instinct. Okay, the inflatable tubes aren’t a blue chip stock with a big dividend. They are a small cap stock that you can add to your portfolio for a little speculation. I would say a growth stock. That’s my opinion.