Getting ready for 2012: Picking the eggs

Safeway50s

Back to our series. We’re now at the stage where we begin to pick companies to invest in, and then, as DDFIL used to say, “Watch the basket!” We know others have said the same, but we like to give credit to the ones we first heard utter a wise saying, especially when it is a relative.

We now need to do research. Sound boring? Not when you realize that everything you do is research. Going grocery shopping? What are your favorite brands? You usually can find company information in fine print on an obscure corner of the label. Proctor and Gamble, Kellogg, Kraft, and more are on your grocery store shelves. What are your favorite stores? What company owns the mall where you shop? Are these companies publicly traded? Chances are they are.

Here are a few sample grocery stores: Safeway (NYSE:SWY), Wal-Mart (NYSE:WMT), Albertson’s, part of the SUPERVALU group (NYSE:SVU), or QFC, a part of Kroger (NYSE:KR) are easy. Just look them up on the Internet. The investor info in about four layers in, but you can find it. They give dividend history, price history, SEC links, and more.

Although we didn’t act on the information, several years ago we noticed a huge improvement in looks and operations at our local Safeway store. If we had been more alert, we might thought about investing in the company. It would have been quite a ride, depending upon when we got in and whether we got out. Take a look at the chart on Yahoo!

Next, take a look at the specific industries – packaged foods, food retailers, real estate companies owning malls. IFO is not a lover of real estate or RE companies, but many people understand that market and do quite well in it. We understand the returns can be spectacular, but naturally the losses can be huge, too.

Tune in tomorrow to the next, and most likely last, post in this series, which we’ll put up tomorrow. (We hope.)

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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