I deleted this on Medium from the days when I would document my journey on there. I wrote this on Jan 27th, 2022. But now republishing it on here, due to inspiration from a previous post- Why I became an investor and started the broke college student blog.
This time around, I am writing about the psychological benefit of buying my first share of Coca-Cola stock, ticker symbol KO, and how it provided me peace of mind.
As I write this, I am sitting on my gray sofa with my feet up on the ottoman, with café jazz music in the background, and just to my right, on top of my bookcase, sits a mini Coca-Cola bear with a scarf.
Behind me are framed stock certificates from various companies, the oldest belonging to the parent company of the Titanic, and on my left are framed articles from 1904 and 1916 about Hetty Green, known as the wealthiest woman in America at the time of her death.
A brief history of my investment journey.
Before I started investing, I began my finance journey back in 2018. I read a lot of articles from long-term investors such as Joshua Kennon to get the right mind frame for investing my dollars in the stock market.
One of the most significant nuggets of wisdom I found when becoming an investor was to look at stocks as businesses, next to buy and hold great companies that have survived wars, political turmoil, weak economies, and more. That piece of wisdom led me to buy Coca-Cola as my first serious investment, and I haven’t regretted it since.
So, when did I buy my first share of Coca-Cola stock?
It was in February 2020, right before the March crash when everything started to bleed red. I purchased two shares at fifty-five dollars per share before the price dropped to $39 for a brief moment.
I must say, as hard as it was to see my portfolio bleed right out the gate, I knew from all I had read and studied that I was making the right choice for my household. Fast forward, I now own 36 shares and counting, with a dividend payment of $15.12 reinvested, and I am up on the investment.
What was the psychological benefit of investing in the Coca-Cola Company?
It was that I had taken a crucial step for my financial future, and I did it with a sound mind filled with a wealth of knowledge from those that have built their wealth before me.
Many before me have built their wealth upon shares of Hershey, Coca-Cola, Disney, Microsoft, Colgate-Palmolive, and all these other household companies, and it became my turn to do so. I went to bed that night feeling different because I had never taken that kind of initiative to build wealth for my household.
For the first time, I had a sense of security for my future that I never had before. This, over time, improved my mental health. And I did it with a blue-chip company that I felt comfortable with having a small amount of capital in for the long haul.
How can investing in the stock market give me peace of mind when investing is considered risky?
Truthfully, not investing in the stock market is riskier nowadays, especially with insanely high inflation. I admit I would be more than terrified not having my capital in the market working for me, not only due to inflation but because the stock market has been one of the greatest wealth-building machines for families.
My goal is to not become obscenely rich to buy cars and houses. No, my goal is simply to have assets that I can either borrow against or use to keep a great quality of living for my household. Growing up, I am sure, like most, I heard that the market was a scam, that only those at the top get all the fruit, etc.
How did I get past that noise?
I stopped listening to people that never once held a share in a portfolio or didn’t even know what a brokerage account was. If you observe closely, you find that most of the time, people repeat what they have heard, not what they have done.
For example, Uncle Bill might have lost his shirt in the market. That could be true, but what isn’t being told is that Uncle Bill jumped into the market and bought a hot stock because his Uber driver told him about a great return he had.
Of course, we know the outcome. Because Uncle Bill didn’t do his research and assess his own risk in managing his capital, he lost more than just his investment.
He lost confidence, which impacted his ego, so now he tells everyone that the market is a scam, and he tells anyone willing to listen. Sadly, those that listened to Uncle Bill started to repeat what they had heard without ever once investing in the stock market themselves.
Do I still have peace of mind during the volatility of 2022?
Indeed, I do, and I hold other shares in businesses than just Coca-Cola. My household is a big fan of Disney as a family company, and we keep shares in what I call the “Vault,” which means these shares will never get sold unless…
A) The fundamentals of the company change.
B) The company is no longer what we bought into when we first decided to deploy our capital.
During this time of volatility, I am keeping an eye on some companies that I might want to add to one of the household accounts.
Again, a big part of having peace of mind in the market is knowing what you are invested in, the percentage of capital you have allocated, the weighting of your portfolio, etc.
I am not an expert, but I have done well enough to know that what I have learned holds its value, and I am humble enough to know that I still have a lot to learn when it comes to being the kind of investor I want to be.
Conclusion
There is something about sitting here writing about my investment in Coca-Cola that makes me feel warm inside. Perhaps it’s because I know that owning shares in a company plays a more significant role outside my invested capital.
I love seeing strangers enjoying a cold Coke on a hot summer day or bonding with family over cheeseburgers, fries, and Coke products. I get the same feeling when people enjoy Hershey bars or bake with Hershey products for family gatherings.
By no means am I saying Coca-Cola is the healthiest, but the great thing about investing is that you get to decide where you want your capital to go and how it contributes to the world.
For some investors, that is making sure their money is tied to ESG values: environmental, social, governance, and SRI, socially responsible investing.
When you take that step to deploy your capital, make sure that you are at peace with the businesses you invest in because, at the end of the day, you have to sleep at night knowing your capital is ‘safe’ and where you park it.
Update 8/6/2024 My personal account reached a milestone with shares of Coca-Cola.
The Broke College Student 
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