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Shopping Baskets Hold Investing Secrets
By Lori B. Murray
Bibi
Schweitzer is a smart shopper who knows a good thing when she sees it.
According to 14-year-old Bibi, “good things" include Abercrombie
& Fitch, Gap, McDonald’s, Coca-Cola, Nike, and Estee Lauder. And she
is now turning these favorite brands into wise financial investments.
It (Sometimes) Pays to Be Popular!
There are many ways to choose stocks, but one of the strongest indicators of a smart investment is popularity. In other words, look for companies whose brands you see most often in your friends’ shopping baskets. If lots of people buy that brand, the company is probably going to grow.
For Bibi, selecting stock is largely common sense if you follow these two simple rules:
- invest in what you know; and,
- pick a company (or brand) lots of people use.
Starting Smart
Bibi began her investing hobby with an investment in the Stein RoesTM Young InvestorsTM Mutual Fund. From there, she ventured to several individual companies that she could track on the Internet.
"I would love to find the next Microsoft," she says. "I just want to pick a winner!"
Finding Money to Invest
Since investing is an activity that requires upfront cash, Bibi has a summer job at a baby clothing and furniture store in her hometown of Larchmont, NY. She also invests money from her allowance. Her parents sometimes match her investing funds.
Bibi has always liked to save money. "If I have $60, for example, I ask my dad to buy me a share of stock," she explains.
Future CEO
Bibi doesn’t plan to rely only on stock profits for future income. She thinks her organizational and leadership skills will lead to a career in her favorite field — cosmetics. "I want to be the CEO of Estee Lauder or another big cosmetics company," she says. As usual, she has already put money into her favorite brand by investing in 30 shares of Estee Lauder.
Lori B. Murray is a freelance writer and former stockbroker from Columbus, OH.