Selecting the Types of Companies That Fit Your Investment Personality
Not all companies are the same. For example, what Starbucks sells is very different from what Exxon sells - and we're not talking about the fact that we don't drink gas! People need gas to get to and from work - even if the price is $ 4.00 per gallon - but people don't have to spend $ 4.00 for a cup of coffee if they can't afford it. Some people don't have to drink coffee at all, while others can't work the first morning without that cup of coffee, and there are people who have to pick me up all day for a cup of coffee. . If you want to invest your hard-earned money, you have to take this into account. In general, buying stocks in companies that sell the products we need reduces the risk. The following types of businesses should be considered:
1. Defensive enterprise
Defensive companies sell what we need. Food companies such as Kellogg's and Campbell's are examples. We also need fuel, prescription drugs and "basic foods" for consumers such as toothpaste, soap and detergent. We even need the services of undertakers to bury our dead!
The name "defensive" comes from the fact that if the economy shows signs of hesitation, you can defend your heritage by buying shares in these companies. While companies selling premium coffee and other luxury goods are likely to experience declining sales and profits, which will cause stock prices to fall, defensive companies will continue to decline. We will continue to eat and a certain section of the population will continue to die. Do you know someone who didn't shower and brushed his teeth because the economy was not doing well? I didn't think that!
2. Income Corporation
Imagine a company that supplies natural gas to a house on an inhabited island for heating and cooking through a network of pipes buried under the island's streets. The company is in an interesting situation. However, there are no growth opportunities. On the other hand, it doesn't have much competition. For a potential competitor, it would be crazy to tear up all the streets of the island to lay gas pipelines next to the existing ones!
What does the company have to do with the profit it regularly generates? The decision most of these companies make is to pay a significant percentage of their profit to their shareholders, who ultimately own the company!
These shareholder payments are called dividends. Shareholders of these companies go to their mailboxes four times a year (as often as dividends are paid) and cash checks representing significant income!
Growing companies
Have you ever been in a situation where something - perhaps the last incredible slice of three-tiered chocolate cake at a busy party - was there to take away? You knew if you didn't pack it and someone else would soon do that.
Some companies operate in markets that have so much potential for new products. They know a competitor will do it if they don't launch these new products soon. The mobile communications market is a good example of a market with enormous potential.
Growing companies have taken on the task of quickly increasing sales and profits. When these benefits are realized, they are "reinvested" in the development of new products. As a result, growing companies pay little or no dividends, making it a less attractive investment for retirees who need their investments to pay their regular income. However, if they can become leaders in growing markets, their stock prices can rise significantly. This attracts young investors who want to create wealth.
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1. Defensive enterprise
Defensive companies sell what we need. Food companies such as Kellogg's and Campbell's are examples. We also need fuel, prescription drugs and "basic foods" for consumers such as toothpaste, soap and detergent. We even need the services of undertakers to bury our dead!
The name "defensive" comes from the fact that if the economy shows signs of hesitation, you can defend your heritage by buying shares in these companies. While companies selling premium coffee and other luxury goods are likely to experience declining sales and profits, which will cause stock prices to fall, defensive companies will continue to decline. We will continue to eat and a certain section of the population will continue to die. Do you know someone who didn't shower and brushed his teeth because the economy was not doing well? I didn't think that!
2. Income Corporation
Imagine a company that supplies natural gas to a house on an inhabited island for heating and cooking through a network of pipes buried under the island's streets. The company is in an interesting situation. However, there are no growth opportunities. On the other hand, it doesn't have much competition. For a potential competitor, it would be crazy to tear up all the streets of the island to lay gas pipelines next to the existing ones!
What does the company have to do with the profit it regularly generates? The decision most of these companies make is to pay a significant percentage of their profit to their shareholders, who ultimately own the company!
These shareholder payments are called dividends. Shareholders of these companies go to their mailboxes four times a year (as often as dividends are paid) and cash checks representing significant income!
Growing companies
Have you ever been in a situation where something - perhaps the last incredible slice of three-tiered chocolate cake at a busy party - was there to take away? You knew if you didn't pack it and someone else would soon do that.
Some companies operate in markets that have so much potential for new products. They know a competitor will do it if they don't launch these new products soon. The mobile communications market is a good example of a market with enormous potential.
Growing companies have taken on the task of quickly increasing sales and profits. When these benefits are realized, they are "reinvested" in the development of new products. As a result, growing companies pay little or no dividends, making it a less attractive investment for retirees who need their investments to pay their regular income. However, if they can become leaders in growing markets, their stock prices can rise significantly. This attracts young investors who want to create wealth.
https://teletype.in/@alicasmith77/How-Could-You-Make-The-Performance-of-Your-Employe
https://teletype.in/@alicasmith77/How-Audio-Visual-Equipment-Would-Make-Your-Eventhttps://teletype.in/@alicasmith77/Make-the-Best-Audio-Visual-Equipment-Choice-for
https://teletype.in/@alicasmith77/Need-Something-Capture-Your-Evergreen-Moments
http://ems-events.liberty.me/event-production-services-why-hire-an-event-management-company/
http://ems-events.liberty.me/things-you-need-to-know-about-autocue-hire-for-your-business/
http://ems-events.liberty.me/5-best-business-developing-ideas/
http://officialguccimane.ning.com/profiles/blogs/want-the-best-equipment-to-make-your-event-shine-through
https://degentevakana.com/blogs/view/20312
https://teletype.in/@alicasmith77/Why-You-Need-Help-from-Personal-Trainer-to-Exe
https://www.party.biz/blogs/43962/53177/finding-the-best-gym-near-your-location-is-very-easy
http://ems-events.liberty.me/know-everything-about-pregnancy-massage/
https://teletype.in/@meridianspa1/Enjoy-Different-Treatments-and-Massage-in-Spa-Day
https://teletype.in/@alicasmith77/Great-Advantages-of-Massage-For-Men-And-Women
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