I'm a pretty boring investor, I don't speculate, I don't day trade, I buy and hoooooold a company for the next 5 years, maybe a decade. Along the way, whenever there is a drawback, I place in more cash into the company. Why? Because I'm so optimistic about the future prospects of the company. Sadly, I might be doing research on a company and feel hesitant to place any money. It's just me being human and asking "what if?" Allow me to tell you that "what if?" has cost me a lot of future gains. Here are some of the winners I missed.
When I realized that McDonald's paid an annual dividend of roughly $4 per share, I felt intrigued. Owning just 30 shares would yield you a total of $120 by the end of the year. It's a good stream of passive income. However, when I witnessed that their revenues were slowly decreasing as well as net income, I felt hesitant to place any money. A company as big as McDonald's has potentially reached its peak, you can't grow McDonald's any bigger, the whole corporation is international. There is a McDonald's on every corner of every street in the U.S. I saw no future prospects for the stock to gain any large momentum other than just a mediocre 6 - 10% not including dividends, year after year. Sure enough, I was wrong.
Monster has some impressive revenues, their brand is very strong, it sponsors numerous e-sports gamers, BMX, car racing/drifting events. My only concern was, how much can this company continue growing and how can they expand their energy drink industry. Aside to continue purchasing subsidiaries, I didn't see exponential growth in their stock just how Coca-Cola did back in 1994 going into 1997, so I didn't dip my toes in Monster energy.
For some that don't know, I work at a Jiffy Lube and our uniforms, mats, first aid kits, and cleaning supplies all come from Cintas. A Cintas truck delivers the goods every week. I did quick research and found out that Cintas is in fact, a publicly traded company, read their 10-K, and found a company with a competitive advantage, who is #1 in their industry. However, I felt reluctant to purchase shares of a company at $115 per share. I felt best to remain out of it until a downturn or a sharp 10% down.
I don't have to be right about every investment I make. I just have to pick a few winners and you can still make plenty of money and have very large returns doing so.