FYI: A reader asks, “As an investor, how should I view the correlation between being bullish on the product and being bullish on the stock?”
The idea that you should buy what you know goes something like this- “I cannot believe how much money I spend at Costco. Hey wait a minute, why don’t I buy some stock in this company?”
This line of thinking was made famous by Peter Lynch, the former head of Fidelity’s Magellan Fund. Lynch, however, said this concept was taken out of context and oversimplified. He told the Wall Street Journal, “I’ve never said, If you go to a mall, see a Starbucks and say it’s good coffee, you should call Fidelity brokerage and buy the stock.”
Regards,
Ted
Comments
https://theirrelevantinvestor.com/2019/01/29/the-single-greatest-error/
Regards,
Ted