Shaq-Fu for Investing

Good Morning,

Recently I received a question about what stocks I’m looking at it and while I always have a couple of stocks that I might be considering I never have shared my reasoning behind looking at a couple stocks (FYI, if you are looking for free stock tips this is probably not the blog for you). This week CNBC wrote an article on Shaquille O’Neal and his investment philosophy that I thought would be good to share. A couple takeaways from the article are:

1.    Shaq overheard Jeff Bezos (founder of Amazon) saying that “he makes his investments based on if it's going to change peoples lives”
2.    Shaq has owned Alphabet (Google) and Apple for multiple years
3.    If Shaq doesn’t believe in an investment he doesn’t look at it

As a person that is a fan of growth investing, I truly believe the first point, but I do understand at times there will be stocks that might be staples in peoples lives that are undervalued. At that same time, I understand the perspective where Jeff was coming from as he has built a company that seeks to maintain a high sales/revenue growth rate. For someone wondering what stocks they should invest in, the framework described in the article is a great consider when building a portfolio for a longer-term IF you believe in holding names for a couple years. For those that utilize more of a trading strategy, this might be the best starting point, but investing is based on people building portfolios/strategies based on their beliefs/goals which can be different based on various variables.

At the end of the day, investing is tailored to your: goals, preference, risk tolerance, and time horizon which will be different from others because we all are different taste/preferences. What works for Shaq might not work for you, but hopefully, you can learn something from him/this article that will help you become a better investor.

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