Today I ran across an old post by Wale, instructor at Todd University. The post was in reference to his call on oil, stating that it was undervalued and that he was interested in investing in it. I shrugged it off because in my opinion oil is a dead energy source and the world is transitioning to electricity.
The key here is that we were both right. He was right that oil is undervalued. Oil stocks have rallied for a 40% gain since his call. I was right that oil is a dead fuel and that electric cars and other alternative sources are on the way.
After giving this some thought, I believe that his tweet was before President Trump, which is significant. The market has changed as Trump favors tried and true business and as a result, tried and true fuels like oil and coal. Hence the rise in oil prices and gas prices.
The interesting thing here is that I learned how important it is to stay in your lane. Oil stocks are not my thing. But to Wale they might be the wave. To succeed as an investor you don’t have to know everything about everything but you do need to know everything about and master your lane. Since oil was not my lane, I completely missed the impact Trump would have on the industry. If oil was my lane I would have spotted it and capitalized on it.
My lane has become moderate growth companies. Companies that are larger cap but still have room to grow. I do this because I don’t want to gamble on pennies but I still want the large upside. This would be Netflix, Under Armour, Amazon, etc. They have a strong foundation and a sound business but they haven’t fully developed into what they can be. Because this is my lane I not only own the stock, I own their products, I know their financials, I know their trading patters, I know their 52 week range, I have read all relevant articles and listened to the conference calls and podcasts. I am obsessed with my lane.
The takeaway though is that we can all make money in different lanes. Another point is that we can all be right. Its not either or. This is not just related to investing, this, in my opinion, applies to careers, finances, real estate, sports, social justice issues, etc. Its all about perspective, goals and outlook. Double down on your perspective.
“Don’t let someone who spent five second thinking about your proposition talk you out of an idea you spent five weeks thinking about.” – TM
I hate when I spend time thinking about an idea and how to make it work then share it with a family member and they respond “that can’t work because x” or “what about x” or “you can’t do that”… That might be true, for them, but not for me. Not for my lane.
See, you don’t have to be in all lanes but you have to be in one lane. This lane can be your career, your business, your networking org, your family, whatever. To succeed you have to be all in, you have to be obsessed. Anything less and you are asking to get snuck. But be careful who you allow to speak on your lane. They might not know what they are talking about because they “didn’t do the education”, word to Kanye.
One of the worst things you can do is try to explain your stance/lane to other people. If it is working for you that is all that matters. Don’t defend what is working, don’t debate what is working, double down on what is working. In the end, results speak. Don’t waste your time trying to convince people who have a vested interest in not seeing the obvious.
If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership. Email email@example.com today to join.
Be great, invest well,