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What is coffee can investing?

      The article is only about coffee can investing like explation,methods etc. There is generally no relation between the two word or term 'coffee can' and 'investing'. Then what is coffee can investing? From where the term 'coffee can investing' is coming? Let's explore:

What is coffee can investing?


        Many years ago when stock market in US was not online or share was traded offline as a paper, people were buying stock and they stored it in coffee can. Most of the cases they forgot about the stock which they bought. After some years when they found the stock from the coffee can, many times they became profitable. And they thought that time if they came to know about the stock before then sold it ago and could not gain profit.
    
       As they forget about the stock which they bought so they can hold the share in long term. Observing this incident portfollio manager Robert Kirby started this term 'coffee can investing'. Coffee can investing means buy a share and forget. As the people of US in past century bought the share and hid it in coffee can and forgot about the stock. Similiarly in 'coffee can investing' buy the share and forget about it. Forget means hold it for long term.

       For coffee can investing you can not buy low quality and less potential company's stock. For this you have to pick good quality and high potential company's stock in your portfollio and have to hold them in long term. Many people buy a stock first and then research and analyze about the stock. They track everyday stock's price and news. It is not good for long term investor. Coffee can investing is fully different of it. It says invest in high potential, growth and good quality company which will perform good in future. Mr. Warren Buffet uses this method. He also buy the quality stock and hold it patiently for long term. In 1987 he invested heavily in 'Coca-Cola' stock when the US stock market crashed and till now he hold the stock of Coca-Cola. He picked his most of the stock in his portfollio using this method.

         Coffee can investing is very popular in US stock market. This method is also applicablein passive fund as like as active fund( stock market ). You can invest in passive fund with the help of this app 'groww','kuvera','upstox' etc. You have to pay no commision to invest in passive fund and you can directly or indirectly invest in it. Coffee can investing is not so popular in India because in India a few Indian invest in Indian stock market and mutual fund. On the other hand in US 50% of its citizens invest in US stock market directly or indirectly.

       For this PANTANJA wants to help you to increase your knowledge about stock market and finance.

Best wishes to invest.

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