The Price of Owning Stocks

I spent an hour or so Sunday night reading three very important documents instead of watching part of the Pro-Bowl. Don’t get me wrong, I love football, but my financial future is more important, and so is yours. The three documents were: Verizon’s 8-K filing, Verizon’s press release about the 8-K filing, and the transcript of Verizon’s earnings conference call. These three documents tell me everything I need to know about Verizon’s future to make an informed decision about owning their stock.

When you own stock in a company, you should be doing your due diligence as an investor to keep up with SEC filings, conference call transcripts, and general information from the internet. Jim Cramer recommends “an hour a week” per stock and I completely agree. It is much more labor intensive to own stocks than it is to own mutual or index funds, but the rewards are far greater. If you had invested in an S&P 500 index fund 10 years ago, you would have lost 19.92% of your money. Owning stocks and doing the necessary research will put you in the financial driver’s seat.

If you are not committed to checking your stocks every day for prices and news, then don’t buy them. If you are not willing to read every 8-K, 10-K, and 10-Q, then don’t buy them. If you are willing to do that work as well as read some financial books and sometimes watch Mad Money, then you are ready to start investing in your future.

Disclosure: Long Verizon (VZ)

Tim Ferro

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