BY COLLIN HARNESS
I love Apple. It is a great company and they make great products.
People keep telling me: “Invest in what you know.”
Meaning that people should invest their money into businesses that a person uses or knows their products/services well. But I do not agree with that idea and I do not believe you should either.
You should be a rule breaker.
If you want to become wealthy “fast” you are going to need to do things a little different.
I know Apple well. And I have invested in the stock in the past. I know the products of Walmart and Exxon and Coke and AT&T. But knowing of a business is not the best strategy for owning a business stock.
There are a lot more business that I do not know than I do. I have never used Salesforce and I could not tell you what their products are, but I know it is a stock that is increasing and will continue to increase.
Apple is a good stocks and it will continue to increase in value. Walmart is a good stock and will continue to increase in value over time. But we are not looking for ‘good’ stocks, we are looking for stocks that are great. That are going to provide a massive return.
Apple is a large business. When businesses are massive every year it gets harder and harder to grow beyond expectations. There are plenty of businesses that do it. Amazon and Microsoft, but most businesses start to grow at a slower pace and they start paying higher and higher dividends to keep the shareholders happy.
Look for the underdogs. The businesses that are not getting enough love, but have a great business model and leadership.
Here are 3 alternatives to Apple that I am investing into:
These are all business that have a much lower market cap than Apple or Amazon, but they are growing fast. Like weeds!
And they are hungry to be successful. Management wants to prove that they know what they are doing.
These stocks can easily increase 10X and still have room to run.
If you follow the crowd and buy Apple, you will be become rich. Apple will be bigger 10 years from now than it is today. But it will take you many years, if not decades to become rich.
If you go against the crowd and invest in stocks that are being overlooked today, you will be in a position to ride the roller coaster up once Wall Street figures out that these businesses are dramatically increasing their performance.
Don’t invest in what you think you know. Invest in what you think the future needs.