I don’t like investing in individual companies – they seem to go up when you think they’re doing poorly and go down when you think they’re doing well. Individual companies possess something called “Company-Specific” Risk which means their stock price is susceptible to risks such as lawsuits, management changes and other non-market factors.
While I don’t recommend exposing yourself to company-specific risk, you can decrease the chances of being burnt by individual companies by purchasing proven quality and diversifying. Here’s a list of 10 Companies that Everyone Should Own Stock In:
- Wal-Mart Stores, Inc.
- International Business Machines Corp.
- Chevron Corp.
- PepsiCo, Inc.
- Procter & Gamble Co
- Exxon Mobil Corp
- United Technologies.
- McDonald’s Corp.
Why own each of the above companies?