would a purchase of coca-cola (ko) stock be a good investment for a new born to have...?

so they would have alot of money for future college expenses? held for about 18 years?

6 Answers

  • 1 decade ago
    Favorite Answer

    While it's doubtful that a company like KO would go out of business, a lot can happen in 18 years. You may still own the stock by then, but nobody can predict whether the price will go up or down with any certainty. Investing in only one company reminds me of an old saying about all your eggs and one basket.

    A better idea would be to diversify your investment across several companies in different industry sectors.

    A simpler way to diversify would be to invest in an index ETF, such as QQQQ, DIA, SPY, or VTI. You will be hard pressed to find a mutual fund that beats the indexes consistently year after year.

  • 1 decade ago

    yes, it will be very nice. Over the past 18 years KO has appreciated 4.78 times, in other words a $1000 investment 18 years ago is worth $4,783.47 today.

  • 1 decade ago

    Yes, as Coke is yielding just under 3% now, and as time goes by, will raise their dividend. I did this with my kids years ago in Exxon, GTE, AT&T, MO, MRK, and after 15-20 years of reinvestments, they all had money for college.

    A++ for your thinking!

  • Anonymous
    1 decade ago

    what if your money made you 1 - 10% or 10% to 200% per month

    with no risk at all,what if you dont need to work and just enjoy life

    what if you can watch your wealth growing while you are having fun

    visit myfxfunds dot com

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  • 1 decade ago

    Rather, I'd say bonds. That's what my parents did for me. Purchase them, then store them until you want to redeem them.

    If not, then you could put money in a CD or mutual fund.

  • Anonymous
    1 decade ago

    not necesarily, buy and hold is not a good idea. buy and do homework things change.

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