Best Stock? An Investor Might Already Know It!

Key Points

• While investing in individual companies does require some research, it is quite likely that you already know some quality companies.
• A phrase we like to use at Genvest is “invest where dollars are being spent” and look for companies that save time and money. There could be strong investments that you are a customer of in your daily life.
• It sometimes takes digging in industries that we are not as involved in but oftentimes your greatest investment idea can come from an observation that you make as a consumer. 
• It is important to still look at financials, valuation and other factors but sometimes the best idea screens are in your own head. 

How Would I Already Know Quality Stocks to Consider?

There is a common phrase used in the investing world that goes along the lines of, “When you have the chance, give a company’s product or service a shot.” This is not to discredit the importance of analyzing how a company manages itself financially or how its leaders plan to take it forward, but consumers rule the market. 

Remember, companies exist because they believe their product or service will be of benefit to you. A phrase we like to state here at GenVest is, “Invest where dollars are being spent.” 

GenVest QuickTake

Ask yourself this, what company actually remains profitable (unless terribly managed) with products or services consumers do not enjoy? Do you like your Iphone, Nike Shoes, Chipotle Bowls, Gmail, Clean Clothes or even Cinnamon Toast Crunch in the morning? You could even create a diversified portfolio most likely just from personal items you own or services you use. 

Your Dollar is Worth More Today by investing in these companies because if you are making them wealthier, might as well make yourself.