When I made my first stock investment, I was 12 years old, and like most kids, I wasn’t exactly an expert in financial analysis. But I was curious and eager to learn. I remember sitting in front of my laptop, scrolling through Yahoo Finance, trying to make sense of graphs, numbers, and ratios. That’s when I came across The Hershey Company.
Hershey wasn’t just a random pick—it was strategic, even if I didn’t fully realize it at the time. It was a brand I knew well (who doesn’t love Reese’s or Hershey bars?), and I’d seen its products everywhere. The familiarity made me confident it was a company I could trust to do well.
But I wasn’t just going off name recognition—I had done a little research. Here’s what helped me decide:
1. Hershey Was Stable
I wasn’t looking for risky, high-reward stocks. At 12, I wanted something dependable, and Hershey fit the bill. They’ve been around for over 100 years, and people love chocolate no matter the economy (comfort food, anyone?). I also noticed that the company’s beta—basically a measure of how much a stock’s price moves compared to the market—was low. That told me Hershey’s stock was less volatile, meaning I could sleep at night without worrying too much about wild swings in price.
2. Understanding Valuation Ratios
I was new to investing, but one ratio stood out to me: the Price-to-Earnings (P/E) Ratio. Hershey’s P/E ratio wasn’t crazy high like some tech companies, and it wasn’t suspiciously low either. It told me the stock was priced fairly for what the company was earning, which felt like a safe bet. I also looked at their dividend yield—they paid a steady dividend, which meant I could earn a little extra while holding onto the stock.
3. Growth and Consistency
I read that Hershey’s revenue had been steadily growing over the years. At the time, I didn’t fully understand all the ins and outs of financial statements, but I grasped the idea that growth = good. They also had a strong brand presence. Even as trends in food shifted, Hershey seemed to stay relevant by expanding their product line and investing in things like healthier snacks.
What I Learned From Investing in Hershey
Looking back, choosing Hershey was a solid move for a beginner. The stock didn’t skyrocket overnight, but it taught me the importance of investing in companies you believe in and understand. Plus, it gave me a reason to keep learning. Over time, I started paying more attention to other ratios like return on equity (ROE) and concepts like earnings per share (EPS), all because I wanted to know more about what made Hershey a good investment.
If you’re a teen thinking about investing for the first time, my advice is this: start with companies you know and take the time to learn about their financials. You don’t need to be an expert right away—just curious enough to ask questions. Who knows? Your first investment might be the start of a lifelong passion for finance.
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