The best company to make direct stock purchases from is the one that makes products for everyday use and will stand the test of economic turmoil. Find direct stock plans that are consistent in their earning power with advice from a personal financial adviser in this free video on stocks and investments.
Hi, I'm Roger Groh. We're here today to talk about how you would buy stock from a business that you've decided to invest in. Yes, you can buy from a full service brokerage firm and pay full prices, yes you can buy directly from a discounted firm and buy pay 2 per commissions. But also, generally for big companies, you can buy directly from that business. The advantages might be that the fees are a little bit lower, but generally the advantages that it offers a way to participate continually, perhaps monthly, directly into buying stock. You can do that through your 401K plan, you can do that through your IRA and it's setup automatically and you buy 100 dollars or 100,000 dollars, whatever the dollar amount might be monthly or weekly or whatever it is that you setup. In addition, frequently those plans offer a non-expense way to transfer stock from you to somebody else. So for instance, if you're a grandpa and you're setting up an education account for your grandchild, it's a way for you to buy stock and then transfer it into your grandchild's name for free. Now you should check that for each company that you're considering doing because it's not true across the board but it's a wonderful way to give and it's a wonderful way to give cheaply. As to which one is best, well generally they're about the same operationally. The best one is really going to be about the best company that you can put your money into. Now you and I can debate over what's best, but if you're thinking 20 years, 30 years, 40 years, 50 years up the road, the best company to me would seem to be a company that makes products that you use everyday whether times are good or you're in recession. So from my point of view, that means water, power, food, the basics of soap, things like that. Named companies that I can think of that might fall into that category, well Proctor & Gamble might be one, Nestle might be one, Unilever might be one, those are just names that come to mind. Are they the best? I don't know, but they've been pretty consistent in terms of their earning power. Interestingly, the one company that does come to mind that has increased net income and dividends most frequently over the last 65 years is a company called RPM. You can look it up, it's rpm.com. They make Rust-Oleum among other things. Sounds kind of corny but it works pretty good long term. I'm Roger Groh and that's about the best direct investment stock plan.