How do you actually buy stock? Is it really as easy as few clicks of the mouse? Yes it is! The hard part is the timing. Now, I’ve settled on the stock I want to buy. My father’s advice is to do research. He recommended Morningstar and bragged that Google Finance is even one of the better ones. I should be reading articles about the company, learning about the CEO. Asking myself, do I agree with his business practices? Do I like where he’s heading the company? I should also be looking at the recent prices for this stock but also ensuring I gather a complete idea from where they’ve come. I should be analyzing not only for the past year but also 5 years ago, 10 years, how was the stock performing?

Okay first order of business I went to and put in Coach’s ticker symbol: COH. Their site is very interactive. I first looked at the past 5 days performance. Then looked at the YTD spread. From this view, it seemed pretty volatile. I didn’t see much consistency and there were quite a bit of price fluctuations. But then getting an even bigger picture I looked at the 5 year. Taking a step back, you can see the stock has been on a steady incline. The 10 year zoom showed the same thing. Over the long range, the stock had consistently risen in value. Okay, phew. I was worried there for a second. Prime example of why it is best to get the whole picture before you make any decisions.

I really started comparing the dips and peaks. From what I saw it seem the stock was lowest between 11am and 2pm daily. And Thursday’s were typically lowest of the whole week. So I watched it a week to test my theory.

Meanwhile, I read an article that Jim Cramer, my dad’s ‘buddy’, was impressed with the way Lew Frankfort, CEO, manages Coach. Okay I’m feeling even better about this. My dad also talked about a gut feeling. That if something doesn’t seem right or sounds fishy, it probably is and to get out. But thankfully here, I was starting to feel even more sure about this.

My research:

  • Check out company on Morningstar
  • Check out company on Google Finance
  • Read related articles about the company
  • Analyze long range of stock performance
  • Get advice from a trusted advisor
  • Go with your gut