Wednesday, May 21, 2008
I used to buy cheap furniture. I was young, and didn't have much money, and didn't really think nice furniture was all that important. However, I recently turned the corner. Not sure if it has more to do with age or with my income. Probably both.
I bought a media console pictured similar to above. I bought it to match the TV that I will eventually get. In times past, I would have just found a nice cheap piece of furniture that would have sufficed to do its job of holding my TV. However, I figured I was about to spend a fair amount of money on my TV and figured it needed an equally nice stand. It's made of real wood, a far cry from the Ikea furniture I'm used to.
The odd thing is that I have always believed in buying quality items. Growing up, my family bought the best we could afford despite the fact we didn't have much money. My mother would always tell me that in the long run, buying something of quality would save you money because you wouldn't have to replace it.
I've done the same strategy with stocks. I've only bought a few dozen stocks in my life. For the most part, I've bought companies which are considered high quality, companies with long histories of strong earnings. Since they are of higher quality, I don't replace them often. Almost all the stocks in my current portfolio I have owned for over two years. It is especially good in times like this when the markets are shaky.