Is Clorox A Buy?

buy clorox stock

I wrote this post for new investors that may be risk-averse.

If you’re like me, you have a high tolerance for risk.  You will have a portfolio that consists of companies on the cusp of innovative disruption.  These companies’ stock prices tends to be quite volatile.  You could be up 200%, and then give back more than half in weeks.

That kind of price movement may not sit well with some investors.  If you fall in this category that’s fine, because I have a suggestion for you: Clorox!

Now, I am a believer that many old-line companies are in big trouble.  They’re simply not moving fast enough to remain competitive.  However, Clorox (NYSE: CLX) is unique.  I believe they will continue to outperform the market for many years to come.

Clorox makes products that we must have on a daily or weekly basis, and that’s simply not going away.  Consider the brands they own:

1. Clorox Wipes

2. Clorox Bleach

3. Hidden Valley Salad Dressing

4. Pine-Sol

5. Burt’s Bees

6. Glad

7. Brita Water Filters

8. Kingsford Charcoal

9. Fresh Step Cat Litter

10. Liquid-Plumr

I think you could sleep at night if you owned these brand names.  You’re not going to set the world on fire in the way you would if you owned an Amazon or a Netflix, but that might not be your style.

That’s why I believe Clorox is a good choice for risk-averse investors.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the companies mentioned.

Will We Have A Bear Market In 2019?

bear market 2019

Photo: Eve Livesey.  

Good morning.

“Are we in a bear market?”

“What should I do if we’re in a bear market?”

As the end of the year approaches, you will start to see many financial newsletters calling for a bear market in 2019…especially considering the way the second half of this year has gone.

Throw in the potential Fed rate hikes, as well as the trade spat with China (reportedly resolved as of yesterday, but who knows?), and you have a recipe for a recession – which could lead to a bear market.

The truth of the matter is that no one knows for sure as to what next year will bring.  I wouldn’t be surprised to see the market continue to move higher, and a bear market wouldn’t shock me either.

The last bear market we had was between 2008 and 2009.  It lasted for 15 months.  Since the 1930s, the U.S. stock market has had eight bear markets, lasting 1.4 years on average.

So what should you do if there’s a bear market?

It depends.  If you need your money in the next three years, you should probably take it out of the market.  If this year has taught you anything, it’s that you never know when a market sell-off is going to happen.

If your time frame is more long-term, which I hope is the case, then do nothing.  If you are a regular investor, and you have a fixed amount that you invest each month, then continue to do so.  If we have a bear market, you will have bought stocks at some very good prices.  Do not listen to the pundits that tell people to jump in and out of the market because they believe a bear market is coming.  I said it before and I’ll say it again: it is impossible to successfully time the market.

We here at Wealthy Joe are long-term investors.  We don’t let a sell-off or bear market scare us out of owning great businesses for the long term.

 

Birthday Bonanza, Part 5

So far, in my “Birthday Bonanza” series, I’ve discussed:

Now, it’s time to take action.

If you have $1000 ready to open your child’s investment account, great!

Saving a thousand dollars, though, is a very challenging task for some.  This includes married couples and single parents alike.

However, there are a number of ways to come up with the money.

Here are some ideas:

1) Use your income tax refund to fund your child’s investment account.

2) Save $83 per month for 12 months.  The goal of saving for your child’s future should be more than enough motivation to do so!

3) Work a second job, or start a side business, with the purpose of using the first $1000 in profit to fund your child’s investment account.

4) If you are so financially strapped that you can only put $25 a month aside, then put $25 a month aside!  Some money is far better than no money.

I’m sure that many of you have income-generating and/or money-saving ideas to share.  Please don’t be shy!  Tell us about them in the comments section here, or on my Facebook, Twitter or LinkedIn page.

In the next installment, you’re going to open your account!

 

 

A Mania is a Mania!

So…it seems like last year’s cryptocurrency mania has been displaced by cannabis mania.

leaf

I will express the same thoughts regarding cannabis as I did with crypto:  Manias never end well.  The people that end up getting wiped out are the individual retail investors, who tend to buy at the top and sell at the bottom.

Before you you get a case of FOMO (fear of missing out), please remember what happened with bitcoin and all the other cryptocurrencies.

Until next time, Wealthy Joes and Janes!

10 Shares Is All It Takes!

I can’t stress enough the importance of investing in the stock market to build real wealth!

It remains the best kept secret out there.

This morning, I’m going to show you how investing just 10 shares at a time can build you a small fortune.

Success stories like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) are not easy to find.  But they do exist.

All you need is to do some research, have an open mind to what’s possible, and take minimal risk.

Let’s use Apple as an example.

Let’s say you wanted to start investing in January of 2003, 15 years ago, and you decided to start buying Apple, 10 shares at a time:

  1. January 2003: 10 shares @ $14.33 = $144.33
  2. May 2003: 10 shares @ $19.00 = $190.00
  3. January 2004: 10 shares @ $25.00 = $250.00
  4. March 2004: 10 Shares @ $35.00 =$350.00
  5. January 2005: use part of tax return to buy 10 shares @ $64.00 = $640.00

If you wanted to, at this point, you could stop.

Now let’s examine the results.  You now own 50 shares, with a total cost of $998.33, not including transaction costs, which would be another $50.00.  So round up to $1048.33.

Over the next 9 years, Apple would go from $64 to $773 a share, and split 7 for 1.

This means your 50 shares would be 350 shares today.

Your account would be valued at $76,244 today.  Plus, you would receive $1000 a year in dividend payments, which you could either reinvest, or splurge on something nice for yourself.

Please tell me…what would be better than this?!

These kinds of results are possible!

Please…if you’re not already in the market, get in today.  If you’re just getting started, pick up a copy of my short beginners’ guide, The Stock Market is For Everyone.  It will tell you everything you need to know to begin.

Looking to invest in your child’s future?  Don’t miss out on my Birthday Bonanza series.  Read the first installment here.

Until next time!

Birthday Bonanza: Part 1

This week, I will be running a series of posts titled “Birthday Bonanza”.  In this series, I will discuss how investing $1000 for your child at the time of his/her birth, or soon thereafter, can result in considerable returns by the time your child turns 18!

Enjoy…and please share your comments!  Whether you have a question, or have actually done this, I would love to get a discussion going about investing in the stock market and how it can benefit our future generations!

Dollar birthday cake

I got the idea to write this series one evening while listening to one of my favorite podcasts on investing.  One of the listeners had written in asking how they should invest money for their three-year-old son.

The host of the show was taken aback that this father had the wherewithal to even consider investing for his son at such a young age!  Most parents are not thinking that way when their child is three.  I know I wasn’t.

Last year, as many of you know, I wrote a short beginners’ guide titled The Stock Market is For Everyone.  In it, I stress the importance of taking responsibility for your financial freedom through smart investing.

Having heard this podcast, I became inspired to write this “Birthday Bonanza” series for the blog.  My aim here is to encourage – hell, to implore – parents to start investing for their children as soon after they are born as possible.

Nearly 18 years ago, my daughter, Mia, entered the world.  It was, of course, one of the happiest days of my life!  I’m thankful that I have always been in a position to provide for her financially.  It never dawned on me at that time, though, to open an investment account on her behalf.  Had I done so, the amount of wealth I could have generated in her first 18 years of life could have been substantial.

Two years ago, I opened a custodial account for her and purchased six shares of Facebook (NASDAQ:FB).  Better late than never!

After listening to that podcast, I went back to the year my daughter was born – 2000 – and
looked at potential companies I could have invested in back then.  Had I purchased $1000 worth of Amazon (NASDAQ: AMZN) stock, for instance, how much would that investment be worth today?

Quite a lot, in fact!  My $1000 investment in early 2001 would have grown to $116,000 in 2018.

Imagine what your life would have been like had you started out at age 18 with $116,000.  As a result of an initial investment of $1,000 – which was well within my budget at that time – I could have made this possible for my child.

So…how about you?

Like every parent, you want to take steps to ensure that your child has a head start
in life.  I have good news – you can do this!

The future results of an investment you make today could put your child in a different socioeconomic bracket.  The higher a child’s socioeconomic bracket, the greater his or her chances of success.  This is not my opinion…this is a fact.

Regardless of your own socioeconomic standing, you still have the power to change that of your child – with just $1000!

Keep reading this week to learn more.