I haven’t traded stocks in well over a year since I started the Greek Store. But with some extra cash from my recent paycheck, and not wanting my money to sit idly in my checking account, I decided to invest a portion of my earnings in some stocks.
Well, not multiple stocks, per se; I only put money into one company. Unfortunately, I don’t have the funds to appropriately diversify my portfolio. I would need $5,000+ to do that. But hey, we all have to start somewhere haha.
After some preliminary research this weekend, I decided to buy shares in Walgreens (WAG). Other stocks considered were Netflix (NFLX) and AT&T (T). I’m very fond of technologically based stocks, so it was difficult for me to decide against Netflix. Especially since they announced the introduction of on-demand movie streaming. But with news of a price war with Blockbuster, I chose to keep an eye on Netflix for the time being. I also decided against AT&T due to the publicity surrounding it and the soon to launch iPhone. From past experience, companies that are plastered all over the news tend to be volatile in the short-term. Something I wasn’t looking for in an investment.
Instead, I chose a relatively boring (but safe) company. Walgreens has had consistent growth throughout the year and is expected to do well throughout the rest of 2007. As a long term investment, this stock made sense.
Honestly, there is much for me to learn in the world of stocks and investments. Like many recent graduates, my classes didn’t effectively teach how to strategically invest my money for a secure financial future. This is something I have to learn all by my lonesome. On my agenda is building a strong understanding of fundamental and technical analysis in picking stocks. More to come!