Do you purposely spend with companies in your investment portfolio?
Do you purposely spend with companies in your investment portfolio?
Say that you buy & hold mutual funds or index funds with significant holdings in companies such as Toyota, Marriott, AT&T, Johnson & Johnson, Bank of America, Exxon, etc. Do you then purposely give some of your business to those companies (over other companies which are not in your portfolio)? Such as filling up at an ExxonMobil gas station even though it has higher prices than several other quality gas stations or switching to AT&T (cell/phone, internet, cable) even though you're happy with current services at other companies?
Last edited by S17C on Sun Mar 19, 2017 4:16 pm, edited 14 times in total.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Nope. My contribution to a company's revenue would make not any appreciable difference to its business. Paying $0.05 more per gallon would cost me $0.80 extra to fill up my car, and I don't expect it would make me an extra penny on the company's stock.
Plus, since I own only index funds, I probably own a bit of everything.
Plus, since I own only index funds, I probably own a bit of everything.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
No. All the major companies are already in the indexes. There is no need to show favoritism.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
When given a choice between clicking on a paid search ad or an organic search result for the same link, I always click on the paid search ad since I am a Google/Alphabet shareholder.
-
- Posts: 25625
- Joined: Thu Apr 05, 2007 8:20 pm
- Location: New York
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Nope, why would I do that?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
I have 140k invested in MO and PM, and I don't smoke!
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Given a reasonable choice, I always support the companies that I own stock in.
Be Well,
fmhealth
Be Well,
fmhealth
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Before bank credit cards became so common, oil companies sent credit cards to their shareholders. My father owned Texaco stock, had a Texaco credit card and never filled his car anywhere but a Texaco station.
Gill
Gill
Cost basis is redundant. One has a basis in an investment |
One advises and gives advice |
One should follow the principle of investing one's principal
- pennstater2005
- Posts: 2509
- Joined: Wed Apr 11, 2012 8:50 pm
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
That thought has never crossed my mind.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
No. It would be far too time-consuming to keep up with a list.
Like if am stopping on the highway for lunch and there is a choice between Appleby's or TGIF - would I remember which one is a holding in which fund?
And, conversely, I do not waste time trying to weed out funds that have holdings in certain companies I absolutely detest and despise. Like Citibank, PEPCO, Verizon, SnakeFarm
Like if am stopping on the highway for lunch and there is a choice between Appleby's or TGIF - would I remember which one is a holding in which fund?
And, conversely, I do not waste time trying to weed out funds that have holdings in certain companies I absolutely detest and despise. Like Citibank, PEPCO, Verizon, SnakeFarm
-
- Posts: 5343
- Joined: Mon Dec 15, 2014 11:17 am
- Location: midValley OR
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
It was the other way around.
We bought stock (Discretionary) in the companies that had products that we prefer.
Mostly holding cash from sells. Valuations are pretty high in these companies.
We bought stock (Discretionary) in the companies that had products that we prefer.
Mostly holding cash from sells. Valuations are pretty high in these companies.
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
itstoomuch wrote:It was the other way around.
We bought stock (Discretionary) in the companies that had products that we prefer.
Mostly holding cash from sells. Valuations are pretty high in these companies.
+1. I sold the stock and made a tidy profit.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Yes,,
Walmart
Coke
McDonald's
Microsoft.
Walmart
Coke
McDonald's
Microsoft.
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
-
- Posts: 255
- Joined: Wed Oct 07, 2015 8:50 pm
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
I prefer to support the companies I own individual stock shares if possible. But I don't bother trying to remember which companies are in my index fund shares.
Re: Do you purposely spend with companies in your investment portfolio?
I can't help but spend with companies in my investment portfolio because my investment portfolio includes every public company in the world.
Re: Do you purposely spend with companies in your investment portfolio?
I inherited Lockheed Martin (LMT) stock several years ago, and if the company would sell me an 8x8 Amphibious Combat Vehicle at a reduced price, say the price of a Honda Accord , I would buy one.
Alas, that won't happen. Also, can you imagine the gallons per 100 miles rating on the thing?
Otherwise, I don't adjust my buying preferences.
Alas, that won't happen. Also, can you imagine the gallons per 100 miles rating on the thing?
Otherwise, I don't adjust my buying preferences.
"Ritter, Tod und Teufel"
Re: Do you purposely spend with companies in your investment portfolio?
No, the impact would be negligible.
I think more folks do what a previous poster mentioned which is buy stocks of companys that they like.
This practice can really put a drag on your portfolio, I imagine there could be a homerun occasionally.
The average investor will trail the market doing this.
I think more folks do what a previous poster mentioned which is buy stocks of companys that they like.
This practice can really put a drag on your portfolio, I imagine there could be a homerun occasionally.
The average investor will trail the market doing this.
Fools think their own way is right, but the wise listen to others.
Re: Do you purposely spend with companies in your investment portfolio?
No, even if you were to patron private companies that aren't publically traded odds are they use components or services of companies that are.
-
- Posts: 617
- Joined: Sun Aug 23, 2015 8:28 am
Re: Do you purposely spend with companies in your investment portfolio?
I have a twist to this...
I did consulting for two years and so I bough 100 to 150 shares in any company that was smart enough to hire me. Figured if they were that smart, they would do well in the market (or at least that is what i told myself). Actually, by pure luck, it worked out well. It was about 5 years ago and I bought into:
Unilever
Whirlpool
Conagra
Dow Chemical (Never consulted with them but loved the dividend)
Apple
John Deere
Before you all jump all over me.. I know it is stupid.. kind of like going to the race track. But, it was fun and I made some money!
I did consulting for two years and so I bough 100 to 150 shares in any company that was smart enough to hire me. Figured if they were that smart, they would do well in the market (or at least that is what i told myself). Actually, by pure luck, it worked out well. It was about 5 years ago and I bought into:
Unilever
Whirlpool
Conagra
Dow Chemical (Never consulted with them but loved the dividend)
Apple
John Deere
Before you all jump all over me.. I know it is stupid.. kind of like going to the race track. But, it was fun and I made some money!
Twitter: @JAXbogleheads |
EM: JAXbogleheads@gmail.com
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
same herelivesoft wrote:Nope, not at all.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
Re: Do you purposely spend with companies in your investment portfolio?
Some companies that make good/popular products are bad as investments.
Some companies that make bad/inferior products are good as investments.
Both types are included in the broad market indexes. You don't really have a choice as to who is in the index, but you do have a choice as to what you buy. I'm not gonna purposely buy a bad product just because I own a teensy weensy part of the company.
Some companies that make bad/inferior products are good as investments.
Both types are included in the broad market indexes. You don't really have a choice as to who is in the index, but you do have a choice as to what you buy. I'm not gonna purposely buy a bad product just because I own a teensy weensy part of the company.
Re: Do you purposely spend with companies in your investment portfolio?
Not only do I not think one should show favoritism toward the companies one invests in, I don't think one should show favoritism toward the company one works for unless it is publicly visible and would affect one's perception at work.
Re: Do you purposely spend with companies in your investment portfolio?
Yes. I purchase my Trojan rubbers, owned by Church & Dwight Company.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Is your reply the same if you're asked "Do you buy American?" Assuming you're an American, that is.yangtui wrote:No. Why would I do that?
- triceratop
- Posts: 5838
- Joined: Tue Aug 04, 2015 8:20 pm
- Location: la la land
Re: Do you purposely spend with companies in your investment portfolio?
I do. I buy GEICO insurance as a shareholder (1 share of BRKB) of Berkshire Hathaway. But it's really like the reverse: Geico gives me a discount for owning the stock.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
- oldcomputerguy
- Moderator
- Posts: 17930
- Joined: Sun Nov 22, 2015 5:50 am
- Location: Tennessee
Re: Do you purposely spend with companies in your investment portfolio?
Since I hold VTSAX in my taxable account and FSTVX in my IRA, yes, some of my spending each month goes into companies that happen to be in my portfolio.
There is only one success - to be able to spend your life in your own way. (Christopher Morley)
Re: Do you purposely spend with companies in your investment portfolio?
Never even crosses my mind.
I always wanted to be a procrastinator.
Re: Do you purposely spend with companies in your investment portfolio?
No, and I probably try to actively avoid patronizing many of the companies that end up in some of my funds.
- blaugranamd
- Posts: 742
- Joined: Wed Apr 11, 2012 1:57 pm
- Location: D-lux apt in the sky
Re: Do you purposely spend with companies in your investment portfolio?
I would estimate 75% of all my expenses go to companies I own. That's just because 25% are not publicly traded.
-- Don't mistake more funds for more diversity: Total Int'l + Total Market = 7k to 10k stocks -- |
-- Market return does NOT = average nor 50th percentile, rather 80-90th percentile long term ---
-
- Posts: 3181
- Joined: Mon Feb 26, 2007 4:33 pm
Re: Do you purposely spend with companies in your investment portfolio?
I only have US index funds representing all companies, We buy products we like and need.
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
My reply would be the same. As a consumer, I buy the best product or service at the best price and let market competition take care of itself. (And 50% of my portfolio is international, so it wouldn't matter to my investments anyway.)selters wrote:Is your reply the same if you're asked "Do you buy American?" Assuming you're an American, that is.yangtui wrote:No. Why would I do that?
Re: Do you purposely spend with companies in your investment portfolio?
No. Most of the companies you mention are so large that even if I were to donate my entire net worth to one of them, the stock would not even budge a penny. And even if it did, it wouldn't make sense to do it.
-
- Posts: 1488
- Joined: Wed Mar 23, 2016 9:28 am
- Location: SE Michigan
Re: Do you purposely spend with companies in your investment portfolio?
For most of my portfolios, fund positions, no. Because it wouldn't be practical for me or meaningful for them. For my stock portfolio, yes - for 5 out of 40 positions at the moment. Not for their benefit, but for mine.
For those 5 positions only, my consumer experience led me to research further and ultimately establish those investment positions in the first place. So I make an effort to maintain that "spending contact", along with other more research-oriented efforts of course, as part of my total investor due diligence. And in those cases, it has paid off for me. For all the rest, no, it doesn't make any real difference. In fact, it wouldn't be directly possible for me to even do this for many companies I hold - simply because of the nature of their products (a rocket and missile engine manufacturer comes to mind) or their geographic area (some of my positions, for example, don't sell outside of Asia).
For those 5 positions only, my consumer experience led me to research further and ultimately establish those investment positions in the first place. So I make an effort to maintain that "spending contact", along with other more research-oriented efforts of course, as part of my total investor due diligence. And in those cases, it has paid off for me. For all the rest, no, it doesn't make any real difference. In fact, it wouldn't be directly possible for me to even do this for many companies I hold - simply because of the nature of their products (a rocket and missile engine manufacturer comes to mind) or their geographic area (some of my positions, for example, don't sell outside of Asia).
Re: Do you purposely spend with companies in your investment portfolio?
Walgreens - yes
Proctor and Gamble - yes
pharma companies (Pfizer and J&J - out of my control)
McDonalds - yes...for coffee only.
Microsoft - yes
Exxon Mobil - probably as they no doubt are refining off brand gasoline purchased.
Bob Evans - no
Coca Cola - gave up Diet Coke 18 months ago
American Express - nope
Ameriprize - no
Canadian National Railroad - no, but I wave at the trainmen when I am stopped at a crossing.
Harley Davidson - no
Ed
Proctor and Gamble - yes
pharma companies (Pfizer and J&J - out of my control)
McDonalds - yes...for coffee only.
Microsoft - yes
Exxon Mobil - probably as they no doubt are refining off brand gasoline purchased.
Bob Evans - no
Coca Cola - gave up Diet Coke 18 months ago
American Express - nope
Ameriprize - no
Canadian National Railroad - no, but I wave at the trainmen when I am stopped at a crossing.
Harley Davidson - no
Ed
- dratkinson
- Posts: 6116
- Joined: Thu Jul 26, 2007 6:23 pm
- Location: Centennial CO
Re: Do you purposely spend with companies in your investment portfolio?
Yes, can't help it. Why? Because I own everything.
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
-
- Posts: 731
- Joined: Thu Nov 26, 2015 12:59 pm
Re: Do you purposely spend with companies in your investment portfolio?
Maybe if I actually bought a large number of shares in various companies, that I could hold for as long as I wanted, with the exact amount invested in them that I wanted (I wouldn't do this because I'm just not willing to put in the work and worry of maintaining a large amount of money in individual stocks).
If we're talking about a market cap weighted fund like total stock market, there's not enough concentration in one stock for me to think about it.
In other funds, if there are large enough individual positions to start thinking this way, it seems turnover could easily be high (one that comes to mind is HDV (iShares Core High Dividend) - 74% turnover). Why go out of my way to give a top holding business while the fund is not only controlling how much of the individual company I own, but for how long I own it?
I know someone that couldn't stop talking about BP stock back around 2006 and even recently mentioned the juicy dividend. It's trading at about half the amount it was back in 06. They always tried to get me to fill my vehicle up at a BP station
If we're talking about a market cap weighted fund like total stock market, there's not enough concentration in one stock for me to think about it.
In other funds, if there are large enough individual positions to start thinking this way, it seems turnover could easily be high (one that comes to mind is HDV (iShares Core High Dividend) - 74% turnover). Why go out of my way to give a top holding business while the fund is not only controlling how much of the individual company I own, but for how long I own it?
I know someone that couldn't stop talking about BP stock back around 2006 and even recently mentioned the juicy dividend. It's trading at about half the amount it was back in 06. They always tried to get me to fill my vehicle up at a BP station
Re: Do you purposely spend with companies in your investment portfolio?
I see a growing tendency for individuals in this "connected" age to somehow think that their own actions have a significant impact on the operations/outcomes of much large entities. Perhaps this is due to an increased emphasis in promoting things like tweets, facebook pages, blogs, online complaints, or whatnot in the media. Don't be fooled. Your (and my) mediocre dollars don't mean a thing.
As Kevin O'Leary likes to say, we're just cochroaches waiting to be crushed.
As Kevin O'Leary likes to say, we're just cochroaches waiting to be crushed.
Last edited by Loik098 on Fri Mar 24, 2017 1:38 pm, edited 1 time in total.
Re: Do you purposely spend with companies in your investment portfolio?
Nope.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
- cheese_breath
- Posts: 11786
- Joined: Wed Sep 14, 2011 7:08 pm
Re: Do you purposely spend with companies in your investment portfolio?
Since all my equity investments are TSM and S&P 500 funds it would be hard not to.
The surest way to know the future is when it becomes the past.
-
- Posts: 417
- Joined: Mon Apr 19, 2010 11:39 am
Re: Do you purposely spend with companies in your investment portfolio?
Years ago, before I'd ever even heard of Vanguard, I invested in Home Depot stock. It has been very good to me and I still own a lot of it. So I do favor HD over Lowes for many purchases.
-
- Posts: 2799
- Joined: Tue Dec 04, 2012 10:05 pm
Re: Do you purposely spend on products/services with companies that are in your investment portfolio?
Same here. This is how I got, Apple, Costco, Starbucks, and Southwest Airlines.itstoomuch wrote:It was the other way around.
We bought stock (Discretionary) in the companies that had products that we prefer.
Mostly holding cash from sells. Valuations are pretty high in these companies.