Wednesday, November 30, 2005

Wallet Talk Wednesday: New Investments

I’ve just recently purchased some stocks that I believe would go up in the long run, I think would give me good returns within 5 years.

Cup of Coffee

This first stock pick and also my speculative pick is a coffee company because of my following "common sense" reasons:

  1. Generation X & Y DRINK a lot of coffee, and I mean a lot. It’s like the Coke (no not that coke that you snort, the soda coke) of this generation AND coffee doesn’t cause diabetes and won’t really make you obese so the coffee drinkers will live longer drinking more coffee for a long long long long time. And can you imagine the price of a cup of coffee? It’s like $3.xx for a cup in Starbucks and people are complaining about a gallon of gas at $3! Weird huh!
  2. The company just started and I’m in for the long haul so if management does it right they should grow to be "similar" to Starbucks in the future. They do have other varieties of tea too so it would attract tea drinkers too I hope.
  3. They already have WiFi networks in their shops and they are only growing slowly now as they haven’t penetrated too much of the west coast yet so once their coffee and other treats starts flowing to the West Side & East Side and North to South I hope it would give me great gains in the future.

Dollar Sign

The next stock pick is an ETF, a Mid Cap Index Stock. This is part of my passive diversified portfolio that should grow pretty good within a few years, it’s actually been going up since I got it. The "common sense" reasons I got this stock:

  1. It contains a good mix of financial and utility companies that I would like to dip my hands in since I don't have these types of company in my liquid portfolio yet.
  2. With China, India and the Asia Pacific’s growing economies the financial institutions will have a good set of companies needing loans, financial support, insurance, investment capital, and consulting from various financial institutions so this will give me good coverage on that area.
  3. Utilities and Energy are always on demand and normally gains profits during winter season and holiday season (driving to shop and natural gas for heating), and so does retail (but the index doesn’t have retail) so I’m hoping to leverage on this to have some good gains this winter time.

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