Investing with Confidence: Unveiling the Potential of $400 in These Two Promising Stocks

Unleash the potential of investing with $400 in hand. Discover two promising stocks, Coca-Cola and Amazon, and learn why they are excellent choices. Embrace the stock market's thrilling journey and seize the opportunity for long-term financial growth.

Emily Carter
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  • Historical data reveals that market downturns are typically followed by robust recoveries, making them opportune moments for investors to enter the stock market.
  • Recent policy changes in stock brokerages, such as the elimination of minimum deposit limits and pay-per-trade commissions, have made stock market participation more accessible to individuals with limited funds.
  • Coca-Cola (NYSE: KO) and (NASDAQ: AMZN) emerge as compelling investment opportunities, with Coca-Cola offering stability, transparency, and a generous dividend, and Amazon showcasing resilience, a long-term focus, and a strong financial foundation.

Putting money into the stock market might seem like taking an exciting roller coaster trip. Everything in between is an exciting and terrifying roller coaster ride of unknowns and possibilities. Let’s use the year 2022 as an example and look at what transpired then. In 2021, major market indexes including the S&P 500 and Nasdaq Composite reached new records.

But the year after that, a severe bear market emerged, and annual market returns were the lowest they’d been since the 2008 subprime mortgage crisis. However, the historical record shows that every major stock market fall is followed by a strong bull market rebound. This realization emphasizes the opportunity for astute investors to profit from market declines.

The Historical Precedent

The good news for investors is that bad market years tend to be followed by good ones with healthy profits. Eleven bear markets with annual S&P 500 declines of at least 20% have occurred during the previous 60 years.

Surprisingly, the year after 7 of these bad markets had double-digit gains, and 5 saw increases of at least 20%. The size of a market correction or bear market is unpredictable, yet large recoveries from such downturns have been seen historically.

Seizing Opportunity in the Modern Era

Investors may benefit from current policy changes in stock brokerages in addition to historical patterns. The cost and hassle of purchasing stocks have been greatly reduced by the elimination of minimum deposit requirements and fees for online brokers.

Additionally, investors with lower budgets may now own a piece of high-priced equities thanks to the widespread availability of fractional shares. These changes have democratized stock market involvement, allowing people from a wider range of socioeconomic backgrounds to take part.

Therefore, after paying for regular costs and saving for an emergency, the amount of money left over for stock market investments is often rather little.

Unveiling Promising Opportunities: Stocks Worthy of Consideration

1. Coca-Cola: A Refreshingly Simple Investment

Coca-Cola (NYSE: KO) is a top pick for those with a stock investment budget of less than $400. The company’s distribution of soft drinks, water, and other beverages is its exclusive emphasis, making for a refreshingly straightforward business plan.

Coca-Cola, as the market leader, makes money via its extensive network of bottling partners and the sale of beverage concentrates. Revenue is further bolstered by its in-house bottling activities but at a greater unit volume and thinner profit margins.

Warren Buffett, a legendary investor, has known for a long time that Coca-Cola’s simple business model had validity. Buffett has a large position in Coca-Cola, which is indicative of the company’s transparency and stability, which are important tenets of his investing philosophy. To add to its allure for long-term investors, Coca-Cola pays out a hefty dividend with an effective yield of 3%.

For instance, in 1988 Buffett’s investment company Berkshire Hathaway bought Coca-Cola shares, and thanks to 35 years of consecutive dividend growth, those shares now yield an amazing 68% per year.

Coca-Cola’s efforts to pioneer new kinds of drinking experiences via the use of artificial intelligence and other cutting-edge technologies are equally remarkable. Coca-Cola presents itself as an attractive investment option due to its enormous free cash flows and moderate year-to-date total return.


2. Amazon: A Resilient E-commerce Powerhouse (NASDAQ: AMZN) is another company worth considering, and it can be purchased for about $400. While online retail is Amazon’s bread and butter, the company’s Amazon Web Services (AWS) subsidiary has quickly become a powerhouse in the cloud computing services market.

In particular, AWS contributed 25% of Amazon’s revenues last year, demonstrating a significant impact on the expansion of the company’s bottom line.

Amazon is an attractive investment opportunity for a number of reasons. Even in the face of the difficult inflationary climate of the last year, the firm has again shown its capacity to prosper.

Amazon stands out because it takes the long view, making strategic moves that may disappoint in the near term in order to strengthen its cash-generating engine in the long run. The $64 billion in cash and short-term investments that the corporation has on hand gives it a sound financial base to face any short-term financial issues it may face.

Amazon’s stock price has rebounded well in 2023 despite enduring challenges during the inflation crisis. Although it has risen recently, it is still 31% behind its all-time high from two years ago, giving investors a great opportunity to buy Amazon shares at a bargain. Because of its longevity, forward-thinking, and solid finances, Amazon is a promising investment.


Putting money into the stock market is like setting off on a thrilling journey. History shows that market downturns ultimately pave the way for healthy recoveries, but in the meanwhile, it might seem like you’re on a roller coaster as you experience exciting highs and heart-stopping lows.

Online brokerages have greatly expanded access to the stock market by doing away with minimum deposit requirements and pay-per-trade charges. Individuals with less-than-ideal financial resources now have even more investing options thanks to fractional shares. Given this scenario, investing $400 in the stock market may pay out handsomely down the road.

In this context, two attractive investment opportunities are Coca-Cola and Amazon. Warren Buffett’s long-term investment in Coca-Cola attests to the company’s dependability and demonstrates the company’s simplicity, stability, and dividend yield.

However, despite momentary setbacks in its share price, Amazon remains an appealing company to explore because of its resiliency, long-term ambition, and good financial position.

If you want to succeed in the stock market, you need to enjoy the ride, realize your full potential, and grab the possibilities presented to you. Keep in mind that experience trading often outperforms market timing strategies.

Investing any amount, from $400 on up, wisely now may set you up for substantial financial development tomorrow.

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Emily Carter is a dynamic and insightful business journalist who navigates the economic terrain with finesse. With a sharp analytical mind and a passion for understanding market forces, Emily's articles provide readers with invaluable insights into the ever-evolving world of finance and economics, empowering them to make informed decisions in an interconnected global economy.