Do they actually say that? You should only invest in companies you understand, and being a user if the product helps with that, but that's a metric for weeding out companies, not building a portfolio (i.e. if you dont understand them dont invest, but if you do it doesnt mean you should). The only real metric for investing is if you believe the expected value of the asset to you is greater than the market price. For example, I used moviepass, but I would never have invested in them because they were selling a dollar for 25 cents (which is why I used them...).
Who says to invest in companies who's products you use? That does not seem like great advice. You should invest in companies who are undervalued by the market in your opinion, not just because you like the product but because you think they have a good business around it.
I believe it's a paraphrasing of Warren Buffett's "invest in what you know".
https://abcnews.go.com/Business/wireStory/latest-berkshire-h...
Re:Uber opens at $42 per share
by triangleman on Friday May 10, 2019 @02:52PM
(#19880995)
I think Peter Lynch said that.
Uber is definitely undervalued on HN. They have so much more markets to enter.
Re:Uber opens at $42 per share
by AnimalMuppet on Friday May 10, 2019 @03:55PM
(#19881637)
If your business loses money on each transaction, entering more markets isn't going to save you...
They are expanding agressively, that adds to the cost, they could also increase prices. I'm not worried at all.
Re:Uber opens at $42 per share
by whycombinater on Friday May 10, 2019 @03:46PM
(#19881570)
You are correct if your goal is to maximize the amount of money you have.
Re:Uber opens at $42 per share
by smallbigfish on Friday May 10, 2019 @03:08PM
(#19881173)
First rule is: invest in something you understand.
I hear you, but...
Meh, they say invest in companies who make products you use. I use the shit out of Uber and I don't plan on stopping even if the price goes up a bit. Now, I'm upper middle class, and I understand this isn't everyone's mindset, so I have no idea how the rest of the world feels.
However, there are locatios, like my crappy hometown where I grew up not so fortunate circumstances, where hailing a cab simply wasn't an option. If you want to have fun at a bar, you're driving home drunk.
Bottom line, I believe in this product and I only see it growing in importance - regardless of who is at the helm. That's my gut feel, and that's why I bought in a little today.