Shoebox Investor

What is a shoebox investor? An investor who generally pays himself first. The idea is that any money you can store in a shoebox or piggy bank, should be invested in the market. It is not how much you invest, it is the time value of money you should focus on. The earlier you put the money in the market, the longer you keep it in, the higher the chances of reaping the benefits of accumulating dividends. The reinvested dividends will buy you more shares.

Pay yourself first

Saturday, February 16, 2008

Buy stocks in companies with products you use.


Have you heard of Mr. Clean products? How about Scope mouth wash? These are products we use everyday. You can purchase stocks in Proctor and Gamble directly without a broker. They have a direct deposit application where you can purchase stocks on a monthly basis. Better yet, the stocks certificate will be in your name...(traditionally, if you buy through a broker, it would be in the broker's name).

Here is some other great info.. Market Cap for the company is 204B.. That is big. PE ratio is fairly low, EPS is over $3, and they give out over 2% dividends. Percent dividends are not much, but you have a strong company with well-known brands. You can buy and hold for a very very very long time with no worries about the market. Reinvesting the dividends will get you more shares.

How to invest in P&G

Market Cap:
204.04B
P/E (ttm):
20.06
EPS (ttm):
3.31
Div & Yield:
1.40 (2.10%)

Pay yourself first..
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