I think about investing money in stocks frequently. I\u2019m young and can afford to take more of a risk now than I ever will be able to in the future. With that said, I still think the guiding principle for all investing should be \u201cbuy for the long-run.\u201d That is, buy stock that you think will increase over the long-run, not something that will spike in a month, offer a small return, and leave you pressured to sell.<\/p>\n
After reading Fred Wilson\u2019s post on A VC about why he just bought Amazon stock and recently purchased Google stock, too, I thought back to Warren Buffet\u2019s age-old approach of buying stock in companies that supply a good that consumers consume regularly. E.g., Coca Cola, razor blades, etc.<\/p>\n
One of Fred\u2019s reasons for buying Amazon stock is that, despite their large PE ratio, Amazon is the first place his family shops for anything – even before going to a local store.<\/p>\n
So, is there a principle to be extracted from this approach to buying dot.com stock? Should we be looking for the Dot.coms that are irresistible replacements for everyday errands? That seems to make a lot of sense.<\/p>\n
Afterthought – With increased demand to have things delivered, won\u2019t there be an increased demand on delivery companies like FedEx, DHS, UPS, and the USPS? I would imagine they\u2019re thrilled that people are buying more online than local stores. <\/p>\n","protected":false},"excerpt":{"rendered":"
I think about investing money in stocks frequently. I\u2019m young and can afford to take more of a risk now than I ever will be able to in the future. With that said, I still think the guiding principle for all investing should be \u201cbuy for the long-run.\u201d That is, buy stock that you think […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[128],"tags":[93,606,633,605,632],"class_list":["post-789","post","type-post","status-publish","format-standard","hentry","category-commentary","tag-advice","tag-dotcom","tag-finance","tag-investing","tag-stock"],"_links":{"self":[{"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/posts\/789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/comments?post=789"}],"version-history":[{"count":4,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/posts\/789\/revisions"}],"predecessor-version":[{"id":3198,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/posts\/789\/revisions\/3198"}],"wp:attachment":[{"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/media?parent=789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/categories?post=789"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/yugflog.com\/blog\/wp-json\/wp\/v2\/tags?post=789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}