To check out new investment opportunities, I’m usually keeping an eye out for sites that give me the financial and background information on businesses outside of the normal stock broker advice pages.
Thought I’d share a link with my friends that might be helpful to you if you are looking for the same type of information: Wikinvest.
Sometimes I like to go with the smaller quiet companies that are doing good for the world and have managed to find a way to make some money, too. Other times I need a bigger name that everyone knows, like Nike or VISA. I think the key to a good portfolio is like other successes in life – you need variety and balance.
For example, read this research on Nike and then think about the points made versus what you think you know from real world experience with the brand versus what a stock broker might be telling you. What most people don’t know – or choose to ignore – is that stock brokers make their money off of the trades. Not the profit you make on a stock. Their game is to convince you to sell and buy stocks with the hops of making a profit. It doesn’t really matter to the stock broker if you win or lose, because they make their money off of the trade no matter what.
So I always take their advice with a grain of salt. And about Nike, the stock broker will have a totally different take on the company’s past that you or I might have in relation to the real world. For example, until I read the Wikinvest page on Nike, I did not realize that they bought Converse a few years ago. I still see Converse on a lot of people, especially here in Music City, where almost every roadie and performer wears either converse or cowboy boots. So I know there is money to be made in those shoes and that money will be reflected in Nike’s performance and their stock.
That’s how I see investing responsibly anyways. It’s on me to make the decision, not my broker.