Simple steps to identify what companies to invest in.

Everyone these days is being told to invest now and it’s great to see! However, how does one even make the decision of where, when, and how to invest?…

Let’s start with what you know! Trust me you are more educated on some of these companies than you even realize. Afterall some of these companies you use every single day or can’t live without.

Watch this! Imagine not having your cell phone (Apple) or better yet imagine not having the ability to use Google or any of their products? How about I go even further and say you had no access to energy (Enbridge)? I can keep going but the point I’m trying to make is that every person has the ability to identify things around us that add a lot of value to us.

If some of these products were to be gone, with the snap of a finger we would have a lot more to worry about than the stock market.

The problem is too many people are looking for that unicorn company with a 1000% return in a year. Good luck with that because let me tell you what goes up that fast usually comes down faster and harder! Normally this tends to happen with companies that do not have a strong balance sheet and business model (more on this later).

Here’s what I’ve done in the past and you are more than welcome to try this out too. Reflect on the past month, make a note of all the products you used. Then look at the products you spent the most time using. Narrow it down to your top 3 and search for the company ticker. Now you may Google the chart and it could be in the red right now (more on that later), but if you remember anything always remember this…

Here Jeff Bezos is saying the company and the stock operate completely differently! Check out the clip from the interview here.

I always find it interesting Apple’s stock can take a 5% hit in one day but you walk into the Apple store and it is still packed as always. Microsoft’s stock is at 52 week lows and yet we are continuously using Microsoft Office and all their products without fail. Disneyland is still packed everyday and we’re constantly waiting on the next Marvel release. Google is down 30% from its high and we still replace the word “Google” with “internet search”. I hope you didn’t miss that…the word “Google” is a verb!!! Do you know how powerful that is???

Below is a recent picture my friend sent me from Disneyland. Keep in mind the stock is down over 30% this year.

I’m hoping you can understand the point I’m trying to make. Investing for the long term in the right companies can be fairly straightforward. The problem is there is so much information that it makes it hard to focus!

In the next newsletter I’ll speak more to some of the platforms to start investing on, but for now make note of some of the products you use. You’ll be surprised how easy it is to identify good companies just by doing that. Hey if your giving them money you might as well get some back right?

Thanks for reading!

Kobi