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How to Buy Stocks — Watch Out for Raw Materials' Prices
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Watch Out for Raw Materials' Prices

Pay Close Attention to Prices of Raw Materials

Every company that provides a product has input factors that go into creating that product.

When the prices of raw materials go up or down, this creates a buying or selling opportunity for you to seize. You may want to buy if the input gets cheaper and sell if the input gets more expensive.

Think of coffee beans for Starbucks ($SBUX). The next time coffee bean prices go tumbling, Starbucks may become a great buying opportunity. That is, of course, unless for some unlikely event that the civilized world decides they can function without their daily caffeine fix.