*Don Thompson, McDonald’s President and Chief Executive Officer

Which companies should you invest in?

By: Amanda Anderson

It is a great moment in one’s life to begin their journey into the challenging, yet rewarding world of the stock market. While it may have been a piece of cake to make the decision to become an investor, it is not always easy to decide which companies to invest into. Unfortunately, everyone will not be natural stock market geniuses like Warren Buffet. However, that does not mean that you can’t achieve an impressive level of success, and acquire financial freedom.

One of the most important things to remember about the stock market is that companies need investors just as much as you need to invest. These publicly traded companies may have new projects or products that require funding in order to initiate. By becoming publicly traded corporations, these companies receive the funds they need to move ahead in the particular industries. Your job as an investor is to choose the company that has the most promise.

So which companies have the highest chances in thriving and dominating in their industries? The
competitive businesses are the golden tickets to successful investing. Let’s use Wal-mart and McDonald’s as two great examples.

Wal-mart was not always the mega store that dominates communities around the world. Founder Sam Walton actually opened the first store as a “discount store,” before he eventually decided to open additional stores. The reason why Wal-mart is a leader in retail is because the corporation has managed to grow with the competition. Wal-mart has transformed from a discount store into a mega store that sells everything from groceries, house appliances, furniture, clothing, jewelry, electronics, and more. The chain continues to dominate the retail industry because it practically sells everything at discount prices. And for consumers, that’s the main reason they enjoy the shopping experience.

McDonald’s is basically the Wal-Mart of fast food chains. Founded by brothers Richard and Maurice McDonald, the chain started by one single hamburger restaurant. The two brothers thought they needed to improve the speed of service, and so they created the “Speedee Service System.” This particular creation inspired the drive-through service that you will find at most fast food restaurants today. The two brother’s innovation alone is one of the most important reasons why McDonald’s is still one of the most successful hamburger chains in the world.

The innovation has not stopped with the founders, as the company now sells all types of foods and beverages. The corporation also has an impeccable competitive factor that makes the chain dominant in industries that no one imagined they could thrive in. For example, who would have ever imagined that it would be McDonald’s that would aid in the closing of many Starbucks shops due to the variety of coffees offered at cheaper prices.

Not to mention, both McDonald’s and Wal-mart have formed a partnership that works well for both entities. in most Wal-marts across the country, a McDonald’s restaurant is located in the store.

And even in a horrid economy, both businesses are still pulling magnificent numbers in sales. Investors are still doing well with both companies. In a recession, these types of companies manage to thrive.

So what can you learn from all of this? It’s actually rather simple. You need to make sure you only invest in companies that are both innovative and competitive. Before you buy any stock, request an investor’s kit from all corporations that you are interested in investing with.

Learn more about the executives, and make sure that they are gifted enough to take the corporation into the right direction. Does the company have the potential to lead its industry? Also look at the company’s goals and future projects and make sure that they are staying abreast in the constantly changing world of technology.

Also make sure you invest in the companies that you support regularly. If you love to shop at a particular place often, why not buy a few share of stocks? The company has obviously done something right to turn you into a regular customer.

Be sure to stay knowledgeable of the world around you. As changes take place, there will be new problems to solve. Make sure you invest in a company that can provide real solutions because these are the companies that tend to have long term success.