There are hundreds of thousands of investment opportunities out there. From stocks to mutual funds to ETFs to CDs to bonds and many, many other financial instruments, the opportunities are endless.
If you're making individual investment decisions, one of the things to keep in mind when making investment decisions is the simple question: Do you invest in what you use?
- If you use and love your iPad, iTouch, iPhone, and iPod, do you own any Apple stock?
- If you use Amazon for most of your online shopping needs, talk about it to all your friends, and blog about it all the time, do you own any of it's stock?
- If you've been a faithful Netflix customer since 2003, do you have any of their stock?
- If you just bought a Ford car in the last year or two because you love the cars and believe it's a solid company, do you own any Ford stock?
Chances are, with just the few companies and products I listed above, you could have made a lot of money had you invested when you fell in love with the company whose products you use everyday. Apple stock has gone nuts since the introduction of all the products above. Amazon was one of the first Internet bellwether stocks. Netflix has gone through the roof over time. Ford stock has increased many times over since hitting rock bottom over two years ago. Opening an investment account is easy and the fees to have made these transactions would have been minimal compared to the returns.
I'm not advising that anyone change their investment strategy to running out and buying stock in every single company whose products you buy, but if you truly fall in love with a company, it might at least be worth taking a look, because there's a chance that many others are about to or have fallen in love with that company to. That can translate into increased sales, increased profitability, and of course, a higher stock price.
It's an idea to at least put in the back of your mind next time you have an opportunity for investing.
(Disclaimer: I am not a financial adviser nor does this post construe any recommendations on individual stock or strategy, it is for the purpose of entertainment and discussion only).