Invest in what you know⦠Invest in what you knowâ¦
                                                                                                     [Wealth Daily] Alexander Boulden / Feb 26, 2024 Donât Buy Nvidia Until You See This Dear Reader, Before we get into the hottest stock in the market â you know what Iâm talking about â I want to touch on an important investing topic that tends to fly under the radar. Itâs called buy what you know. This concept hearkens back to your old grade school lessons. Remember when you had writerâs block back when you were first learning to write? The teacher would always tell you to just âwrite what you know.â Of course, thatâs easier said than done. (A lot of writers spill ink on topics about which they know nothing, and thatâs OK.) But the point is to get the creative juices flowing. The same is true with investing. If youâre new to investing, a lot of financial âexpertsâ will tell you to just buy the indexes or exchange-traded funds that track certain sectors. And thereâs nothing wrong with that at all. Iâm a firm believer that the bulk of your invested capital should be tucked away in low-cost index funds. You really canât go wrong if you consistently invest, dollar-cost average, and reinvest the dividends using a dividend reinvestment plan (DRIP). But when you have a little extra cash that you want to play with and add some risk into your portfolio, a lot of investors have no idea where to start. So I would say to invest in what you know. Do you like cars? Invest in car stocks. Do you like golf? Invest in a golf manufacturer. Do you like gaming? Invest in, well, a company that creates the graphics cards for video games. You get the point. With regard to that last example, Iâm talking, of course, about Nvidia (NASDAQ: NVDA). Secret tech stock set to soar on Appleâs Vision Pro Rollout Apple has unleashed its Vision Pro headset, a device set to transform the tech world. This is Apple's most ambitious project since the iPhone. At the heart of this innovation is a small tech firm, collaborating closely with Apple. Its partnership with Apple puts this tech firm in a prime position for growth. [All the details can be found right here.]( Where Were You When You First Heard About Nvidia? This will be a question for the ages now that the popular graphics card company has skyrocketed in value. In the last year alone, the stockâs up nearly 300%. [Nvidia] Since 2014, itâs up 20,000%! Itâs minting millionaires every single day. And look, donât kick yourself if you didnât invest in it. Itâs just to show you that profitable trades like this happen all time. You just have to invest in what you know⦠The Single Most Important Geological Discovery of Our Generation A tiny mining firm is at the forefront of mining the world's largest lithium deposit... And itâs NOT overseas in some politically unstable nation... Every single ounce of this record-breaking deposit is right here in America. With an estimated value of $1.5 trillion, it's about to launch this $5 stock into the stratosphere... [See the full details here.]( The Worst Mistake of My Career Last year, I wrote about the worst trade of my career: Icahn Enterprises (NASDAQ: IEP). And this is a prime example of why you shouldnât invest in something you donât intimately understand. Hereâs what I wrote⦠Back in 2020, I looked for the best â and highest-yielding â dividend-paying companies on the market at the time. I found a lot of options. What I wanted was a good mix of monthly and quarterly dividends. One of those was the JPMorgan Equity Premium Income ETF (NYSE: JEPI), paying $0.42 a share per month. Another was Realty Income Corp. (NYSE: O), paying $0.25 a share per month. Then there was Icahn Enterprises (NASDAQ: IEP), paying $2 a share per quarter. I found the company intriguing, but not just for its dividends. First, Icahn Enterprises is owned by famed activist investor Carl Icahn. Say what you want about the man, but heâs one of the richest and most successful investors on the planet. Heâs up there with Buffett, Munger, etc. Icahn is known for buying companies for cheap and turning them around to sell for a profit. Heâs extremely good at what he does, which is why heâs a multi-billionaire. His fund gives you the opportunity to invest with a successful businessman with a long-term track record of success. Second, itâs a well-diversified holding company that operates in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses. Third, with one of the highest dividends on Wall Street, it pays enough money, in time, to pay the bills⦠You know what happened next? The stock dropped 40% in two days. I didnât have a trailing stop in place (which you absolutely need to have, and I can get into more detail at a later time) and I got screwed. But reading back what I wrote is eye-opening: âItâs a well-diversified holding company that operates in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses.â I know next to nothing about food packaging or home fashion. And Iâm not an expert on energy, real estate, or the automotive industry. I wasnât sticking to my thesis: Invest in what you know.  Shots Fired!!! A war is raging between Wall Street and Main Street, and weâre going to battle. Join our private community of like-minded investors every trading day at 9:00 a.m. for our "Opening Salvo." Weâll tell you which stocks weâre watching. Weâll catch you up on key market-driving events. And weâll be speaking our minds without any corporate sponsors or three-letter agencies peering over our shoulders. Participation is free for anyone with [this invitation.]( P.S. This is an exclusive, limited-time event. We rally at 9:00 a.m. until market open. Trading days only. You must be a member of our private Discord to participate. [Join here]( and check back in at the "Opening Salvo." The Most Obvious Trade of My Career I was so fed up with Wall Street that I decided to follow my own advice and invest in something that I was familiar with⦠video games. On April 26, 2023, I bought 10 shares of Nvidia â the leader in graphics cards for gaming computers. You see the name all over the place if youâre buying a gaming laptop or new computer. Now, admittedly, I didnât hold on to those initial shares, so this isnât me telling you I made 10 grand on this trade, which I could have. (Iâve since been swing-trading it with great success.) The point is I made the right decision by choosing a stock of a company whose products I own right now â and chances are you do too. The Next Nvidia With all the hype around the company now, itâs in volatile territory. If you decide to buy it, youâll have to set up a stop in case thereâs a massive sell-off. Thatâs because the run-up has already come and gone, and itâs looking frothy. What you want to do is simply look for the next big winner. Thatâs what weâre good at here⦠some would say weâre the best. Thatâs why you come to us. Just check out my colleague Jason Williamâs recent track record of monster winners. [jason williams] As you can see, the last two times he recommended AI stocks, his readers had the chance to pocket 2,000% and even 3,000% gains. And heâs even more bullish on [these three small AI companies that have the potential to outgrow Nvidia.]( But youâll want to [get positioned in these three AI stocks today]( because AI is growing faster than Wall Street can handle. Stay frosty, Alexander Boulden
Editor, Wealth Daily [[follow basic]Check us out on YouTube!]( After Alexanderâs passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Alexander is the investment director of Insider Stakeout â a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it. [Check out his editor's page here](. Want to hear more from Alexander? [Sign up to receive emails directly from him]( ranging from market commentaries to opportunities that he has his eye on. [Feedback? get in touch](mailto:/newsletter@wealthdaily.com?subject=Wealth%20Daily%20feedback) [Read this email online]( [Manage Newsletters]( [Share on Twitter]( You signed up for our newsletter with the email {EMAIL}.
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