College Connect: Buy stocks every time you can and hold on to them

Posted By Crystal Beasley

By Kouichi Shirayanagi

Every month that you are working and earning money it is important to save your money. According to NeighborWorks America, a network of affordable housing professionals, 34% of adults in America say they don’t have any emergency savings and 47% of adults in America have said their savings would last 3 months or less.

It is important to look at savings like it is a purchase of a future cushion to avoid financial disaster should an unexpected event like a health emergency or job layoff occur. Just as it may be important to buy tickets to sporting events, CDs, phones or other lifestyle items it is important to sock away money so that it is available for the future.

To do this buy shares of stock that have historically strong long term gains every time you have the cash to buy them. Don’t think about the money that you have in stocks after you have purchased them because if you hold on long term you will always come out ahead. Good stocks to buy and hold are the ones already owned by Berkshire Hathaway, a company managed by one of the wealthiest men in the world Warren Buffett. Buffett is known to buy and hold stakes in companies for a number of years. It is also now possible to invest in the Berkshire Hathaway holdings without needing more that $200,000 by buying the BRKB shares.

According to the latest 13-F filing with the Securities and Exchange commission, Berkshire Hathaway has more than $1 billion in holdings of USG corporation (USG),  DirecTV (DTV), American Express Company (AXP), DaVita Healthcare Partners (DVA), General Motors (GM), Deere and Company (DE), Goldman Sachs (GS), Coca-Cola (KO), International Business Machines (IBM), Moody’s (MCO), Proctor and Gamble (PG), US Bancorp (USB), USG Corporation (USG), Wells Fargo (WFC), Wal-Mart stores (WMT).

It is important not to invest in a company just because someone with proven success has invested in it. Make sure you feel comfortable with the company and understand the business before you invest. Past performance is never an indicator of future results when investing in stocks.

 Kouichi Shirayanagi is a student at University of Missouri

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