Opportunities

15 Mar Opportunities

Often times, friends would ask me about the stock market and if I would give them a stock tip on what the hottest stock is, or which stock would go up the most. I usually don’t give them the answer and it’s not because I am selfish, or don’t want to share any of my research. Instead, I usually ask them questions on what they see happening in their daily life. I ask them which companies they do business with or shop at. Do they notice any of the companies doing particularly well? Do many of their friends or themselves buy a lot of the companies products or services? Do they see certain stores always have lineups or run out of popular items? Let me give you a few examples…

 

Exhibit #1: Chipotle Mexican Grill

Have anyone of you been to one of their fast food Mexican restaurants? Every time I go there (I love their chicken burrito…), there’s always a lineup even at non-lunch or non-dinner time hours. The food is exceptionally good, health conscious, but yet super simple to make. The cost of an average item there is around $7.50 and if you add a drink or chips then your average customer bill would be around $10. I can probably assume that the cost of the food and worker’s wages are relatively low. Add in the rent and other misc. items and you can probably calculate that they have a pretty high profit margin. Bingo! Investors seem to love this stock as it’s gone up over 300% in the past year. Whoa huh!

 

Exhibit #2: Apple

Yup, the infamous Apple. Have you noticed the lineups whenever a new Apple product (ie. iPad or iPhone) is launched? How many people do you know own an iPhone, iPad or iPod? Okay, so there’s a gazillion. Well, investors love this stock. It’s gone up over 400% since 2009.

There are stock opportunities everywhere in your day to day life. You just need to open your eyes and put on your trader cap. You’ll be amazed at the number of opportunities to make money every single day in your daily life.

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