After I read an interesting back to 1989 story of DivHut about his first stock purchase I looked back and thought about my first stock purchase.I think I bought my first stock in 2003. I did not know much about investing and did not have a trading account.
First of all I had to write a report for one of my University classes about one stock. So I had to pick the stock.
At this moment I was married and we were trying to pay all debts my ex husband accumulated before he had met me. So after reading a bunch of books on how to eliminate debts and reviewing our expenses, I noticed that every morning my ex husband would go to Starbucks and buy a latte and banana bread. I asked him to stop. I even made him banana bread at home. He took my banana bread but said he couldn't live without his cup of Starbucks. I was mad. This is how I made my choice of stock for my school project. I thought there should be not just one person being addicted to this coffee.
It turned out I was right and after my research paper I liked the stock but I did not buy it yet.
Later same year my ex husband got obsessed with the idea of moving to a bigger house. He said it was the one and only opportunity and perfect timing. So at the end we actually built a bigger house. One night while we were at the party and my ex was bragging about our new house to his boss I said, "yeah but it is lots of cleaning". My ex's boss told my ex to get a cleaning lady for me. He even gave me a phone of his cleaning lady.
I called and asked cleaning lady for her fee. Back then it was something around $80-$100 per cleaning. Then I don't know how but I got this idea in my head that instead of inviting and paying cleaning lady every time I clean the house I would put money into investment account and invest in stocks.
This is how I got my first share of Starbucks. It turned out to be a good investment. I actually sold my shares last year but I might buy it again one day.
That's a very awesome pick for your first stock! Was there a reason you sold SBUX?
ReplyDeleteCheers!
I was buying a house and needed more cash plus it was in a small brokerage account, which I wanted to close.
DeleteThat is a cool background story as to how you made your first stock purchase. I think that the items we see people purchasing on a daily basis are good ways to find out what companies may be doing well.
ReplyDeleteFor me I picked up a very small amount of shares in Smith & Wesson back in December of 2012 because the stocks had plummeted after a school shooting occurred. I felt that it is kind of difficult to actually implement stricter gun control and in the mean time gun sales are actually increasing. I didn't fully research the company to see how they were financially, I just felt like it would provide a good short term reward (which it did).
Thanks for sharing your story. I think a lot of people pick their first stock based on personal experience.
ReplyDeleteRegards,
Dear Dividend
Interesting story and a great stock pick. I am looking into buying SBUX now but find it quite expensive. I will be looking for a better entry point. Wish I had picked it up 10 years ago :)
ReplyDeleteR2R
yes, I agree, I plan to buy more Starbucks stocks one day but not now.
DeleteGreat story of how you came to own some Starbucks. My wife loves that stuff but I don't really like coffee so it doesn't appeal to me. It's okay every now and then but that's because it's loaded up with so much sugar.
ReplyDelete