For a thought experiment, I wanted to look at the results of what would happen if an investor went through life by adopting this strategy: during the first trading week of January each year, he bought $1,000 worth of Coca-Cola stock. During the first week of April, he bought $1,000 worth of Exxon stock. And during the first week of August, he bought $1,000 worth of Johnson & Johnson stock.
The logistics of this plan would be this: you’d need to come up with $3,000 every year, plus the negligible trading fees (probably around $25 or so each year). This works out to a little over $8 per day.
The rationale behind the plan would be this: you would spend your life accumulating shares of the most powerful beverage company in the world, the most powerful energy enterprise in the world, and the most powerful diversified healthcare giant in the … Read the rest of this article!