Recent Purchase – Coca Cola

By | July 4, 2016

coca-colaThere was no rhyme or reason why I bought shares of Coca Cola (KO) recently as opposed to any of the other stocks in my portfolio. I simply picked it at random. It wasn’t a bad choice since I hadn’t purchased it in a while. But deciding whether to buy Coca Cola or Realty Income or any other stock presents an interesting dilemma. How do I choose which stock to purchase, when I have enough funds to purchase just one stock? There are several options.  Buying stocks in the order of dividend payout is one.  Looking at the company’s fundamentals to see if it’s a good time to buy is another. But, I’ve decided to follow a very simple but effect approach.  I buy stocks in the order they appear in my portfolio.

In Order of Portfolio

  • I am now going to buy stocks in order they appear in my portfolio. I will be ignoring ABBV, as I own zero shares in that company (as of this writing) and this stock is a place holder until I decide to expand. Following this approach helps me to ignore the emotions associated with deciding which stock to buy. I am NOT suggesting that this is the best approach or that you necessarily should follow my approach. In fact, I’m quite sure that studying the company’s fundamentals and the state of the economy might be better gauges to determine whether now is the right time to buy and which stocks are best to invest in. However, because I’m not trying to time the market, and have already done my research and decided that the companies in my portfolio have strong fundamentals, I have no problems with picking any order in which to invest in the stocks.  That’s because, what’s important is that I am investing, over the long haul.

Automatic Investments

  • Picking stocks in the order as they appear in my portfolio only works for those stocks that don’t have automatic contributions set up. So, for example, I purchase Exxon Mobile (XOM) shares automatically every month. Hopefully, when my portfolio gets bigger in terms of the number of stocks I own, I will be able to do more automatic investments.  I don’t include XOM in the purchase rotation because it is purchased automatically.

My last purchase was Coca Cola. My next purchase will be AAPL followed by Realty Income. I will continue that rotation for the foreseeable future.  Unless of course I either increase the size of my portfolio or I notice a dramatic change in stock price.  I’ll keep following this approach until I find a better one.

Let me know what you think about my approach or what your approach is.

4 thoughts on “Recent Purchase – Coca Cola

  1. MrSLM

    I think as long as all your picks are solid long term performers, it’s hard to go wrong with a DCA style approach like this. I’m literally sitting here drinking a diet coke this second, so I can’t fault your choice 🙂

    Reply
    1. Data Lore Post author

      Yea MrSLM, I love coke and I totally agree. Welcome to the site.

      Reply
  2. Joseph

    Can never go wrong with Coca Cola, IMO. Your portfolio is about where mine was a few months ago so from one beginner to another, great job so far!

    Reply
    1. Data Lore Post author

      Thanks a lot Joseph. We all have to start somewhere. To coin a phrase, the journey of a thousand dividends must begin with a single step. By creating this site and starting with this portfolio, I have taken the first step. Don’t be a stranger. I hope you stop by from time to time. Welcome.

      Reply

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