If you have worked with private investors for long enough, you will inevitably come across a person who wants to invest in the stocks of a specific company with a well-known brand. Whether they want to buy shares of their beloved electric car manufacturer because they love the cars, or whether they like to own shares of a clothing retailer because they enjoy shopping there and like to buy their clothes. As a professional adviser, you may argue until you are blue in the face that there is a difference between a good product and a good investment but to no avail. Well, it turns out, this mental link between a good product and a good investment is not a one-way street, so if you happen to run a consumer goods or services company, here is how you can boost your sales by 40% at almost no cost.
By way of a thought experiment, let‘s assume that you suspect that company A is underpaying its employees, squeezing its suppliers and overcharging its customers. Worse, you happen to be one of those customers and you have nowhere else to go. Would it not make sense to buy stock in company A, on the assumption that most of the gross margin will eventually end up in shareholders‘ pockets? Or am I, in thinking like this, in danger of becoming the drunkard who buys the pub?
By way of a thought experiment, let‘s assume that you suspect that company A is underpaying its employees, squeezing its suppliers and overcharging its customers. Worse, you happen to be one of those customers and you have nowhere else to go. Would it not make sense to buy stock in company A, on the assumption that most of the gross margin will eventually end up in shareholders‘ pockets? Or am I, in thinking like this, in danger of becoming the drunkard who buys the pub?
I will give the child shares in a private university.
They might not become wealthy, but at least it might encourage them to finish their geography homework.