Be unreasonable with your investment strategy and stock picks

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If you want to do something that has never been done before you have to learn to be unreasonable.  This is because everything that you are thinking now or have been taught has landed you exactly where you are right now.  I define unreasonable as the willingness to go against conventional wisdom and generally accepted ideas.

Every time I mention an idea about what I want to build or which stocks I like there is always some “smart” person who pops up to provide some conventional wisdom for why it can’t work.  The problem is that they are right.  There are a lot of CAN’Ts out there and they are proven correct.  These people are smart, they know a lot but they are operating within the limits of the world.  They are operating in the CAN’Ts.

I say that they are right because you can only be as great as you decide to be.  It’s like Henry Ford says “whether you believe you can or you believe you can’t you are right”.  I have found that there are always ways you cant do something.  You have to be willing to find the way that you can.  If i wanted to drive to Las Vegas I cant get there going south, east, west, south west, south east, etc.  But there is a way, if I find that way instead of indwell on all the ways I cant get there, I can get to Vegas.

At this point in your investing career you have to be willing to invest in what people can’t see.  People never thought they would have a phone that has no buttons but now it is the norm.  People never thought they could have TV without commercials but now it is the norm.  It is important, when deciding where you want to invest, to invest years out in what could be.  The easy thing to do is to look at a company that has already blown up and then backtrack the stock to see how much $1,000 would have made you. It is more difficult to start in the present and place bets on these stocks, while you are being made fun of by people who are betting on old faithful blue chips, collecting their dividends but never truly making money.

One of the great things about being forward thinking is that the world will eventually catch up.  I was telling my wife about how the world has become more iPad friendly.  If you are like me and have had an iPad for a while you have found that you NOW can copy and paste, multi task and use a keyboard/pen on the iPad now.  But the iPad is almost seven years old and for ages lacked these essential features.  You have to see your investments like an iPad.  The world eventually caught up to technology that was well before its time but the world did catch up.

An example of this is Under Armour stock that is not yet Nike but can become Nike.  People will talk you out of this while they stand on top of Nike’s multi billion dollar valuation but they wont make any real money holding Nike.  You dont know how many people tell me that Under Armour will never be Nike. Those are probably the same people who thought that Apple would never beat Microsoft or that nobody would ever spend money on $5 coffee. They lack vision.

The real money is made in holding Under Armour as it flips over multiple times.  Nike owners THINK they are smart because they waited until Nike won and then hopped in, taking credit of the past run up, but they didn’t get paid for that run up.  You can wait and look smart holding Apple after it becomes Apple or you can invest ahead of the curve and let the world catch up to your iPad ideas while you get rich for moving before the market was ready.

You have to be willing to put your money out there and swing for the fences.  If you are like me, you are in the wealth accumulation phase, not the wealth preservation phase.  This means you have to start swinging for the fences.  You can’t accumulate wealth buying stocks that are meant for preservation (Nike, Coke, Proctor and Gamble). They are safe, secure and well known, but at the end of the day you wont be wealthy owning those stocks you will just be old.

If you are looking for a mentor and coach to swing for the fences with, email info@capitaltodd.com and join our investment club.

Be Great!

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