Kids love Mcdonalds, I’m not sure why but Mcdonalds is always their first choice when you ask, what would you like to eat. This is especially true for breakfast, maybe its the Happy Meal that comes with a toy or book which is irresistible to them.
One weekend, when my kids was asking me to order Mcdonalds through GrabFood delivery, I decided to share with them a potential life lesson in investing. So instead of ordering, we hoped on to a Mcdonalds outlet. The goal is to show and teach them that Mcdonalds is not in the FnB space but they are the real estate business. Location location location is one of the key success factors. Apart from that, I wanted to show them that they could own a piece of Mcdonalds and if they love going there and like the service, why not do it.
Explaining about stock market
“How to own Mcdonalds? Do we have to spend alot of money to open up a restaurant and work the grill?”, asked my kids.
I replied “In a sense that’s one way of doing it. Opening up a shop and running it physically, it takes alot of work and capital needed. But thankfully, there is another way to own Mcdonalds and get paid when they make profits without all the pain of managing a Mcdonalds. Its called the stock market.”
Now what is stock market?
Its where companies go to raise funds by listing their shares to the public. People will be able to buy and sell the shares at an open market price through the exchange. In Singapore, its SGX, in USA there is Nasdaq or New York Stock Exchange. There are many others around the world which you can explore.
How can I find Mcdonalds stock price?
The ticket counter for Mcdonalds is MCD, the share price is floating around 200 USD per share in 2020. This is interesting as Mcdonalds was listed in the NYSE in 1980s and the starting price was 1 USD, very cheap compared to today’s price. Apart from that, MCD pays a yearly dividend of 2% which is better than putting money in the bank.
What is a dividend?
A dividend is defined as a payment made by a corporation to its shareholders. Usually these payouts are made in cash (called “cash dividends”) source: dividend.com
“Sounds good dad, here’s my pocket money can we buy it now?” 😂
Who created the stock market?
Antwerp, Belgium is credited with having the world’s first operational stock market. The invention of the stock market cannot be credited to one single person. It was gradually invented and grown to what it is today by several ideologies and partnerships of different business people. source: Quora