4 Reason I Bought my Son McDonald’s Stock for his 6th Birthday with Prince Dykes, MBA, AFC

03 / 01 / 19

“Someone is sitting in the shade today because someone planted a tree a long time ago.” -Warren Buffet

Someone’s investments and sacrifices today will be someone’s fortune tomorrow.  Ask yourself, “How can you plant a tree today for your kids’ shade tomorrow?”  “Dad bring me a happy meal from McDonald’s”is a phrase I’ve heard from my son Wesley oh so often through the last few years. And oftentimes I find myself buying those happy meals. I then decided I need to look into investing into McDonald’s, which is a decision that has earned 14% return on investment since August 2017, not including dividends. So here are 4 reasons why I decide to buy my son stocks in McDonald’s for his birthday:

  1. REAL ESTAE: With over 30 billion in real estate assets I learned that McDonald’s is more in the real estate business then the burger business. According to Business Insider the average McDonald’s store earns 2.6 million in annual revenue.  
  2. ASSET vs. LIABILITIES: Everything I had in mind of buying him for his birthday were all liabilities.  I knew the toys, games, candy, clothes and shoes were a guaranteed loss over time. So I thought about assets I could purchase (land, stocks, etc.). The cheapest and quickest asset I saw were stocks.
  3. BUY WHAT YOU KNOW: McDonald’s is one of the largest brands in the world. One of the first brands I fell in love with. Every-time I ride by those McDonald’s “golden arches” Wesley says, “Dad, can I have McDonald’s?” As an adult, I’m not the biggest fan of McDonald’s, but like Wesley I was a huge fan when I was a kid as well. Plus, at-least one McDonald’s product seems to make its way into our household biweekly.    
  4. DIVIDENDS: Dividends aren’t guaranteed but McDonald’s has paid and rising dividend for the past 43 years. When I purchased Wesley shares of McDonald’s stock in 2017 I was happy to see him receive dividends every quarter. I used the DRIP (Dividend ReInvestment Program) to have the dividends reinvested to buy more stocks.

Disclaimer:

The information provided in this blog is for informational purposes only.  It should not be considered financial advice.  You should consult with a professional to determine what may be best for your individual needs.