5.14.2013

Each share of stock should be viewed as a miniature factory



Clyde & Dale's Barrel Factory - N Scale

This is how I view investing. I'm playing a "game" like Monopoly. Investing is buying little tiny companies - each individual share of stock is like a miniature factory. I ask these questions:
  • Is it profitable?
  • Is it viable? (Clyde & Dale's Barrel Factory is cute but few are buying barrels!)
  • Is it part of a mix? A Coca-Cola bottling plant, an aircraft factory, a bank, et cetera. (If you have every played the simulation game - Sim City - this analogy may make sense)
  • Does it return part of the profit to the owner? The dividend.

1 comment:

  1. Here's a little oil company: STO. Each share of stock pays $ .87 per year

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