Invest in What You Know
Most people think the stock market is a cold, mathematical equation. It is actually a collection of buildings filled with people who are trying to sell you something you don’t need.
People who are trying to sell you something you don’t need. This is why you must perform the Two-Minute Drill before ever handing over your money.
Peter Lynch, a man with a very sensible head, realized that you already have a secret weapon. It is called observing reality. If you go to a store and find that everyone is buying a new kind of shoe, and the shoes are good, and the store is always crowded, you have found a potential Tenbagger in its natural habitat.
Wall Street, which is a street in New York filled with men in expensive suits, will not notice this for another six months. They are too busy looking at spreadsheets and eating expensive lunches. By the time they notice, the shoe company will be famous.
But you saw it first. You saw it because you are a human being who lives in the world. This is your “edge.”
The Human Advantage
- The Grocery Store Test: If you see a product flying off the shelves, find out who makes it.
- The Job Site Test: If your boss is buying a new software that actually works, find out who wrote it.
- The Mall Test: If your kids are obsessed with a brand, don’t just buy the brand—buy the company.
The Smartin Score Example: SBUX
Imagine it is 1992. You see people standing in line for three dollars’ worth of burnt coffee. You think, “This is madness.” But then you see they are doing it every day.
- Smartin Roast: If we ran the Smartin App back then, it would have told you that while the coffee was overpriced, the growth was underpriced. The PEG ratio was a beautiful thing to behold.
Don’t Panic. Use your eyes. Then use your brain.
👉 Download Smartin: Quick Stock Ratings on the App Store today