Common Mistake New Investors Make

 

*Transcript*

What’s good everyone!  Happy Friday!

If you have yet to check out this week’s Investment Ideas newsletter featuring Micky D’s aka McDonald’s, do that right now.

Some of our members asked if I could expand on a statement I made in the newsletter.  What I said was that you can’t let your personal biases affect your investing decisions.

This is an extremely common mistake new investors make.  I’ll use McDonald’s as an example to better explain this point.

 

I’m not a fan of McDonald’s product.  I hardly ever eat their food.  In fact I think it tastes like dog shit.  BUT just because I don’t like McDonald’s food, doesn’t mean I should ignore their stock.

Millions, actually hundreds of millions of people eat at McDonald’s every year, they have a great business model, their stock chart looks great, and they have some nice catalysts in 2018 that could drive their stock higher.

So if I ignored their stock just because I didn’t like their food, I could potentially be missing out on a profitable investment opportunity.

The opposite is also true.  Just because you love a company’s product, that doesn’t necessarily mean their stock is a good investment.

 

Snapchat is the perfect example.  When Snapchat went public, a lot of millennials invested in the company because they love the app, they use it all the time, their friends all use it, their girlfriends send them naked pics on it so it’s the greatest app of all time.

But if you read our report on Snapchat, you would have known that Snapchat was extremely overvalued, they are burning cash at an unsustainable rate, and that Facebook and Instagram were crushing them.

Their stock is down about 40% since they went public.

Don’t let your personal biases affect your investment decisions.

Thanks for watching everyone and if you want to learn more about investing, check out our website and sign up for our online course.

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