For as disciplined as I am about investing, there’s one beginning rule I’ve always ignored: buy what you know. I came across this a long time ago, and the theory went that you should buy some stock in the companies whose products you use and have some connection to, making it more likely that you’ll take an interest in the news and performance of your investment.
Instead, I’ve opted for a broadly diversified portfolio of index and sector funds. The only single company stock I own is in my employer, which has actually beat the market a good number of the years I’ve been there.
That changed today, though - I bought stock in two companies who I believe in and have been a longtime customer. They’re innovators, first movers who offer a superior product that I believe will outlive their cheaper imitators. My new picks? Tivo and Netflix.
del.icio.us/mbotos
