We buy groceries, what? Every week? Every two weeks? Monthly? Whatever your frequency I'm sure we can all agree that we spend a lot of money to keep our families fed! Even if you're single and all you buy is frozen pizza there's investment opportunities there!
Weekly Q&A and Home Depot ($HD)
Kroger (KR) is the largest grocery chain in the US. They own grocery stores such as Kroger, Ralph's, Food 4 Less, and Smith’s. Although stores like Target and Walmart have entered the grocery scene Kroger has still managed to do very well and have a consistent following. They still have plenty of people who frequent their stores and their sales haven’t suffered due to Target and Walmart.
The layout of their stores is very nice and they're still able to make a good profit while offering the consumer a decent price point. My local Smith's is always clean when I go and the customer service is always great.
Qs Asked and Answered:
What do you do when you want to invest in the stock market but you're afraid of losing money?
This is a very valid concern for many people. It’s expected to lose some money in the stock market. How much you lose depends on your strategy and your trading plan. I always recommend that you know when to cut your losses if you're trading. Now if you're investing, you want to keep in mind that this is for long-term gain. So you want to hang onto a stock for long-term; meaning years to decades. You don't want to buy it now and sell it in a month just because the price went down. Don’t let the day-to-day, week to week movement get to you if you're investing.
Now, if you're trading you need to have a trading plan in place and you need to know what your exit point is (meaning how much you want to gain and how much you're willing to lose) before you get in a trade if you don't know those two things you should not be entering a trade. By knowing those two before you get in a trade, you have a plan that you can stick to. Stick to that plan and that will minimize how much you're going to lose versus getting in and thinking it will stop going down. If a stock is going down there's no guarantee it is going to stop going down. The only guarantee is at zero. So you want to make sure that you have that plan in place so again, yes, there is a chance you will lose money but how much you lose can be minimized by having a trading plan.
Links and Resources Mentioned
Join the Conversation
I love hearing from you! So, let me know in the comments below which company in the grocery industry interests you.
Don't forget to follow me on Facebook so you don't miss the next time I go live!
Join The Exchange to get access to my 7 day free course and weekly tips about trading the stock market straight to your inbox!