How to Invest in Old Money Stocks

By Sara Ferguson

Before you throw your money at an investment, terminology is a major thing to learn in the investing game. Old money stocks is a term you will hear thrown around in some circles. Old Money Stocks is a term to describe stocks and companies that have been around for a very long time, they are considered stable investments for long term stock plans.

Who would be considered an old money stock? Good examples would be Kraft, Hersheys, Hormel, Clorox, and other companies that produce products that have been around since Moses. They make products that you grew up with, still use today, and have names that tend to be household words.

While these companies have their ups and downs like all companies do, they have a proven track record and staying power to be around for years to come. They are also considered less risky stocks to invest in due to their record of success. The down side to all of this is that you wont profit as much from investments in old money stocks since they are so stable.

How do you find old money stocks to invest? That is as easy as looking around your house. You probably already own products or use services from companies that have been around forever. You may not realize it but they get so engrained in our life we dont think of them or actually we dont ever think of not having them in our lives.

Before you do start investing in old money stocks, I do recommend you get an annual report from the company and take a good look at all the products they make now. Most companies make a wide range of product names, even to the point of competing products on your supermarket shelf! Hard to believe that as you stand there trying to decide between two different brands of a product, they might actually be made by the same company.

The annual report will usually give you a list of all the products and company names they use. It can be very interesting to see the wide range of products a company makes as a whole. It will also give you a better understanding how big companies operate. Also you will get a better understanding why these companies have been around as long as they have and will continue to be around.

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