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How I Built a Winning Stock Portfolio from the Daily Products I Use.
What is the fuss?
Investors invest in the stock market to create wealth. Those who invest directly in stocks aim to beat the stock market index.
Investors spend hours researching to create a basket of stocks that they think will give higher returns than the stock market index. Various strategies can drive this stock selection.
Momentum strategy: Buy what is going up in price. Value investing: Buy beaten-down stocks that are available at a discount. Buy companies with huge tailwinds. Find turnaround stories and invest early on. Or invest in sunrise industry sectors that will disrupt the market and become the next big thing.
No matter the strategy investors choose, mid-to-long-term returns are usually average, not even beating the index. Some investors might sell in a panic or just exit after running out of patience. Some may not understand the price movements, which often defy fundamental and technical research in the short term.
So much time is spent researching, tracking, and rebalancing, all in the end, to make average returns, which may not seem worth the effort.
Is there a simpler way to create a stock portfolio that gives above-average returns without working a sweat?
Yes, there might be one. I experimented with creating a stock portfolio of just the companies whose products and services I use in my daily life. I am a fan of…