This is chapter seven of how to not wake up broke in your 80s.
If you want excitement, go to Vegas. If you want to make money, go boring.
It’s hard to resist the urge to jump into some of the exciting, fast movers in the market. The money press plasters them all over the news, and based on the 24/7 chatter about the newest high tech idea or social media site, you would think no one else is making money but them.
But if you don’t want to wake up broke in your 80s you better stay boring… soap, baking soda, birth control and bleach.
Back in the 1960s and 1970s, did you ever think birth control would be considered boring?
Most of us are old enough to remember the last hot industry, the Internet. It was the only story anyone could talk about. The outcome then was just as predictable as it is today; it’s 2000 all over again. It is just a matter of time.
But companies like The Procter & Gamble Co. (NYSE: PG), The Clorox Co. (NYSE: CLX), a lesser-known name, Church & Dwight Co. (NYSE: CHD), and even something as mundane a grass fertilizer, Scotts Miracle-Gro Co. (NYSE: SMG), have performed year-over-year, paid their dividends and, over time, have made their stockholders, if not rich, very comfortable.
Their products… toilet paper, paper towels, soap and batteries.
No one will be interested in these stock ideas at parties, but when the media noise drops back to a sane level, and the hot stocks of this generation do the same, these “slow Joes” of the market will still be chugging along taking care of their stockholders.
But a note of caution.
The enormous commotion the new highs in the market have generated and the tapering of bond buying by the Fed make even the best ideas for the retired a little too pricey. Add them to your “wait and watch” list. Most are at the top of their trading ranges, and that is no time to buy.
You see, not waking up broke in your 80s isn’t just about stock ideas. It also requires you use the good sense a lifetime has taught you. Nothing goes up forever and patience pays.
Use it!
Other videos in this series:
The Best Long-Term Investment Anyone Can Make
How to Not Wake Up Broke in Your 80s: Part III
Income Investors… Here’s One for You
Four Essential Steps for a Wealthy Retirement
How to Not Wake Up Broke in Your 80s (Part V)
How to Not Wake Up Broke in Your 80s (Part VI)