When it comes to investing, many of us often overlook the products and services we interact with daily. However, these very interactions can provide valuable insights into potential investment opportunities. I call this the "Touch Method."
A Personal Tale: Apple and My Father
My father, Erhard Pfeiffer, a renowned architectural photographer (you can view his work at www.erhardpfeiffer.com), was a testament to this approach, albeit unintentionally. Throughout his illustrious career, he was an avid user of Apple products. His loyalty wasn't driven by stocks or investments; he was simply a customer who appreciated the quality and innovation of their products. But imagine, if he had invested in Apple when he first started using their products, considering the company's exponential growth over the years, the returns could have been significant.
Understanding the Touch Method
The "Touch Method" is straightforward:
- Observe and List: Pay attention to the products, software, and services you use daily. Keep a notepad handy and jot these down.
- Analyze: If you find yourself consistently using a product or service, or notice continuous improvements in them, it might be worth delving into the company's financials. This could hint at a potential investment opportunity.
- Reflect: Conversely, note down products or services you've stopped using and ponder why. Companies behind these might face challenges in the future, affecting their stock performance.
My Personal Touch List
To give you an idea, here's a snapshot of my list:
- Google Suite (Drive, Docs, Photos, Maps)
- Samsung Phone with Android OS Microsoft Office (Excel, Word, Powerpoint)
- Social Media Platforms (WhatsApp, Instagram, Facebook)
- Entertainment (Netflix, Amazon, YouTube)
- Daily Essentials (LG Laptop, Wholefoods, Crest Toothpaste, Tom’s Deodorant, JBL headset, Starbucks coffee)
In Conclusion
The "Touch Method" isn't about making hasty decisions but rather about being more aware of potential investment avenues right under our noses. It's about leveraging personal experiences and understanding to make informed choices in the vast world of investing. So, the next time you pick up your favorite gadget or use a service, think about its potential not just as a product but as an investment opportunity.