How The “French Fry Strategy” Could Change Your Financial Future

If you’re like most people, you sometimes give in to the siren song of fast food. I’ve been just as guilty as the next person. However, a colleague clued me in on an interesting take to his fast food consumption. And actually, it makes a lot of sense…

He said that after years of frequenting various fast food restaurants and giving them his hard-earned cash, he wanted a piece of that action, too. So he came up with a rule: Every time he went to one of these restaurants, he would invest as much, if not more, into the stock.

His reasoning?

If he is going to spend that money on that company’s products, along with millions of others around the world, then why not also own a piece of that metaphorical pie? Again, this strategy works well if you think about how it plays out over the long term.

I was reminded of this “strategy” when I stopped for a quick bite to eat this weekend at my local McDonald’s (MCD). As I ate my burger and fries, I thought, “How many shares will this get me?”

I know what you’re thinking, and just because you don’t eat at these places doesn’t mean you can’t be an owner. Regardless of the amount of their products you consume, many of these companies are just great businesses.

Since we were talking about MCD here, I searched for it on Magnifi to pull up other stocks related to the burger giant. The same idea can apply to these other chains as well.

Say you make a daily Starbucks (SBUX) run or you’re a sucker for McDonald’s double cheeseburger. You most likely spend at least $5 every visit. Now imagine that when you order a large side of fries, you also put the same amount into MCD. Eventually, between the 2% dividend yield and capital gains, your investment could end up paying for your daily fry addiction. You’ll never know if you don’t start investing.

And for those of you thinking, doesn’t one share of MCD cost upward of $260? If you’re using your Magnifi account, you can buy as little as $5 at a time, thanks to the platform’s fractional shares feature. Fractional shares allow you to put as much or as little money into any stock no matter the price it’s trading at.

This “french fry strategy” might seem a little odd, and you might even be thinking that it doesn’t apply to you, but I promise, it does. The underlying idea of this strategy can apply to any company you spend your money on.

Why would you own all Apple (AAPL) or Microsoft (MSFT) products, but not the stock? You’ll never change your life if you don’t stop thinking from a consumer’s mindset, and start thinking like an owner.

Whatever stock you have the appetite for, it’s now easier than ever to build your portfolio for the price of a cup of coffee or your kid’s Happy Meal. Start building your financial future, one french fry at a time.

Today’s feature: Food Stocks

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