Whole Foods Beginning to Spoil
Famed money manager Peter Lynch was a big advocate of investing in what you know -- simple advice that has produced many winners over the years within my own investment portfolio. I've scored some pretty impressive gains by investing in companies whose products I consistently use. One of these has been Starbucks (SBUX) -- I hate to admit it, but I am a complete addict, even though the coffee is average. Another was Williams-Sonoma (WSM), whose offerings are overpriced, but which has some great stuff if you are a foodie. Finally, there was PF Changs (PFCB), which I bought before its buyout. The restaurant's orange peel chicken is still amazing.
I also believe this philosophy can also work on the short side. For example, I used to go to Best Buy (BBY) once a month, but now I shop online at Amazon (AMZN) and have not set foot in a Best Buy store this year. Unfortunately, I missed that opportunity....391 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.