Expert: Dr. Joseph de Beauchamp - 1/1/2005

Question
Happy New Year Doctor: I am interested in investing in Coke-Cola. 1 share of stock, $1000.00 initially and $100.00 per month for 20 years, will have an investment of $24,000. How can I guess what it will be worth with different share purchases and dividends re-invested? Please give me your thoughts. Sincerly Thomas

Answer
Long term, probably 10% per year, and therefore using the rule of 72, you would double your money in 7.2 years. This would be about $2400. More precise would be difficult to prove up since this is subjective measure on past performance.

Now, I really believe your decision should less on one stock but on a mutual fund. You might want to go to the http://wfnn.info site --it is a free site. To the left there is a mutual fund section. Try some small amounts and do some research on the funds. Funds have spread the risk much more and provide small amounts into international risk. Coke could be the best choice, but nobody knows for sure what variables could impact the stock. My advise is choose a large fund that has some Coke in it.

Dr. Joe de Beauchamp