Monday, June 13, 2011

List: Top Investment Companies

In today’s tumultuous economy, it can be very hard to predict which companies are going to do well in the future and which are going to do poorly. By following the news, politics, and general trends of the market, one can get a very vague idea of how the market will play itself out, but even then, surprises, be they good or bad, are a frequent occurrence. This tentative list of today’s top investment companies is a good place to start looking.

The following companies have been shown to have high returns and low risk, as well as predicted growth for the future:

Dow Chemical (DOW)

Dow Chemical has had a history of doing well, even in hard times. Dow is a chemical company that produces plastics and chemicals, and is the third largest chemical company in the world. Because Dow Chemical is so large and their product in great demand (with no indication of letting up), Dow is a good choice for conservative investment.

DuPont (DD)

DuPont (E. I. du Pont de Nemours and Company) is another large chemical company, being the second largest in the world. Although, it competes with Dow, both are extremely successful. Once again, the large size of the company, its longevity, and the lack of liabilities make this company another conservative choice for slowly making a profit.

Honda Motor Company (HMC)

Honda’s cars have the reputation for being high quality to the point of retaining their value for much longer than most other car companies, and this is reflected by their increasing earnings, where other car companies lose value. Honda’s high fuel-efficiency line-up is also becoming increasingly popular, indicating that the company will continue to see an upward trend well into the future.

AT&T (T)

AT&T is a great option for those who wish to invest in a company that has a seemingly bright future ahead of it. AT&T has generally done well through hard economic times, and usually doesn’t lose exuberant amounts of value when the stock market trends downwards.

Exxon Mobil Corporation (XOM)

No list, of top investment companies would be complete without an oil company included. ExxonMobil is a direct descendent of Rockefeller’s Standard Oil. ExxonMobil is the world’s largest publically traded company, and because of this, has great potential for a long term investor because of the almost nonexistent risk of the company folding. Although, it often sees dramatic dips, the trend over the past 30 years has been steadily upward, and though an emphasis on fuel efficient cars has been made in recent years, oil companies have still been making immense profits and seeing the results in the stock market.

No matter what stocks you purchase, you are risking your investment. Even the most stable company can become a liability to your portfolio, as shown by recent bailouts of GM and Chrysler, two companies that were once considered blue chip stocks.

Being aware of the market and the happenings of the world is a must when deciding which stocks to invest in. Because of the volatility of the market in general, caution should be exercised in all major decisions regarding investment in the stock market.