Key insights
- An individual investor outlines a personal investment strategy based on Peter Lynch's principles, focusing on companies whose products they frequently use. The investor considers ABEV, RDDT, MO, and GOOG, but expresses reservations about cannabis stocks due to financial concerns. The overall impact on the US market is slightly negative, reflecting speculative retail investment strategies that can contribute to market volatility.
So I’ll preface this by saying I’m just getting into stocks. Apparently one of the great stock buying guys of all time, Peter Lynch (Believe he founded Fidelity and Merrill Lynch) was a champion of this strategy: focus on buying stocks of companies who sell products you use daily or at least frequently. For me that leaves a few tickers that stand out: ABEV, RDDT, MO, and GOOG. I would have loved to throw a cannabis stock in there, because let me tell you it’s by far my favorite thing to do. But after scouring lists of stocks and analyzing financials, I don’t see cannabis stocks as attractive. I thought about including THC in my list as a joke even though it’s a hospital company and not actually the wonderful drug. The more I think about it, I may just go ahead and include it. I mean, if I continue drinking, smoking a few ciggies, and getting kite high every weekend there’s a chance one day that I lose my ability to moderate and may find myself in a facility owned and operated by Tenet Healthcare. Let me know what you guys think, and hope everyone has a fantastic Monday (or Tuesday for the Australians)!