Invest in Whatever Makes You Angry
Nov 10, 2009 General Nonsense |
I wonder if you could make money by investing in whatever companies make you angriest. For example, when oil prices were climbing to the sky, it was popular to hate oil companies. It also would have been a good time to buy their stock.
Before any war, a lot of people start hating defense companies more than usual. And that's the best time to own defense stocks.
During Microsoft's long run to dominance, the company was widely hated. It also would have been a good stock to own for most of that time. Now it feels as if the white hot hatred of Microsoft has reached some sort of plateau, and so has the stock.
We generally hate companies when we think they have too much power. And that correlates with profits. So suppose you took a survey of people's opinions of various industries today, then did another survey every six months, and tracked the anger levels. If you invested in any industry where the average public hatred was increasing, and sold stock when the average hatred started to level off, would you prosper?
Can you think of any industry where the public's hatred was increasing while the companies' stock prices were stagnate or dropping?
Remember, it's not the absolute amount of hatred that matters, just the direction of the intensity. There is plenty of hatred toward cigarette companies, but thanks to the success of anti-smoking laws, that hatred has leveled off. So according to my hypothesis, this wouldn't be a good time to own cigarette stocks.
What do you think?
Before any war, a lot of people start hating defense companies more than usual. And that's the best time to own defense stocks.
During Microsoft's long run to dominance, the company was widely hated. It also would have been a good stock to own for most of that time. Now it feels as if the white hot hatred of Microsoft has reached some sort of plateau, and so has the stock.
We generally hate companies when we think they have too much power. And that correlates with profits. So suppose you took a survey of people's opinions of various industries today, then did another survey every six months, and tracked the anger levels. If you invested in any industry where the average public hatred was increasing, and sold stock when the average hatred started to level off, would you prosper?
Can you think of any industry where the public's hatred was increasing while the companies' stock prices were stagnate or dropping?
Remember, it's not the absolute amount of hatred that matters, just the direction of the intensity. There is plenty of hatred toward cigarette companies, but thanks to the success of anti-smoking laws, that hatred has leveled off. So according to my hypothesis, this wouldn't be a good time to own cigarette stocks.
What do you think?
Votes: +1
Comments
User Name: frankus
Nov 17, 2009
0
There was a lot of public animosity toward the record companies during the Napster era, and they've lost money hand over fist.
User Name: Tigerh8r
Nov 12, 2009
0
I remember everybody hating Blackwater for a while and they lost a lot of business as a result of the bad PR, and I think people hated the industry in general at the time. There was so much backlash that Blackwater had to change it's name. I think they are now called, "The Fluffy Friendly Bunny Company."
User Name: bjuk
Nov 12, 2009
0
I think the banking sector is truly hated right now, umm you may just have a point!
User Name: Dalebert7
Nov 12, 2009
0
You wold have to look at why people were angry. For instance: are they angry because of high profit margins or poor products? Of course, those are the kinds of things you would look at anyway. So the anger factor doesn't seem to matter that much.
User Name: QwkDrw
Nov 11, 2009
-1
CNN. Ever notice that this politically left (sympathetic to many Democrat policies) programming is selected for "generic" viewing in waiting rooms, lounge areas, and other semi-public spaces?
Perhaps as the public's taste for many politically left policies decreases, the programing on CNN may actually contribute to it's own decreased ratings relative to FNC and other sources of less left slanted news.
Decreased ratings at CNN may not have resulted from public hatred, but according to your tentative logic regarding stock selections, this may ironically remove it's parent organization from the chopping block in some portfolios. Not sure about this ...
Of course, nobody takes stock selection advice from commenters on a cartoonist's blog -- and none is given
!!
Perhaps as the public's taste for many politically left policies decreases, the programing on CNN may actually contribute to it's own decreased ratings relative to FNC and other sources of less left slanted news.
Decreased ratings at CNN may not have resulted from public hatred, but according to your tentative logic regarding stock selections, this may ironically remove it's parent organization from the chopping block in some portfolios. Not sure about this ...
Of course, nobody takes stock selection advice from commenters on a cartoonist's blog -- and none is given
!!
User Name: Dilgal
Nov 11, 2009
+2
You want me to invest in what makes me angry? Do you really think government bonds are a good investment?
User Name: aegl
Nov 11, 2009
0
Everyone hates lawyers ... but most law firms are limited partnerships rather than publically traded companies, so the general public can't cash in on the Adams-hate dividend.
User Name: trippy64
Nov 11, 2009
0
Look at the current financial crisis, and Goldman Sachs continues to rake in the cash. Everyone is mad at the financial sector last spring, and yet, they were pulling record profits.
User Name: freddyx
Nov 11, 2009
+2
Hmm, sorry about that, not sure why my link was blanked. Anyways, Dow Chemicals, makers of Agent Orange and Napalm took Union Carbide over, with mucho pennies created for those at the top. Stock jumped $1.6 billion at the news etc etc
User Name: freddyx
Nov 11, 2009
+1
DrDzoe:
You overestimate the squeamishness of the !$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$% least Union Carbide executives and investors did fine.
You overestimate the squeamishness of the !$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$%*!$% least Union Carbide executives and investors did fine.
User Name: AudioGuy
Nov 11, 2009
+2
Hated movies don't make a lot of money; I realize that the general public can't buy stock in an individual movie, but I would submit that a film studio that has a reputation for producing movies that people hate would not be a good company to buy stock in.
User Name: KevinKunreuther
Nov 11, 2009
+1
A lot of heat is generated towards FOX NEWS because of its right wing slant, so News Corporation may be a good bet.
WAL*MART gets a lot ire because it is so huge and very competitive and successful
AIG is doing well now, too
WAL*MART gets a lot ire because it is so huge and very competitive and successful
AIG is doing well now, too
User Name: Ham24
Nov 10, 2009
+1
"Can you think of any industry where the public's hatred was increasing while the companies' stock prices were stagnate or dropping?"
Someone already stole my fire, but I'll say it anyway: The automotive industry.
As for companies now that are making money while people are torqued off at them, I would say:
- Junk food companies like Frito-Lay because of the obesity epidemic.
- Pharmaceutical companies for ripping off the consumer and making billions on price-fixing.
- Soda companies like Pepsico and Coke. Re: obesity epidemic and "natural bottled water".
- A while back it was coffee shops like Starbucks. Who pays $4 for a cup of coffee?! Well, I do for one (shape of an "L" on the forehead).
- Does Congress count?
Someone already stole my fire, but I'll say it anyway: The automotive industry.
As for companies now that are making money while people are torqued off at them, I would say:
- Junk food companies like Frito-Lay because of the obesity epidemic.
- Pharmaceutical companies for ripping off the consumer and making billions on price-fixing.
- Soda companies like Pepsico and Coke. Re: obesity epidemic and "natural bottled water".
- A while back it was coffee shops like Starbucks. Who pays $4 for a cup of coffee?! Well, I do for one (shape of an "L" on the forehead).
- Does Congress count?
User Name: nWoKevin
Nov 10, 2009
+2
I hate Disney because they purchased Marvel. Disney is also being disliked by some people because they created and pushed Miley Cyrus and Zac Efron and those types of sexualized stars that are marketed at children.
User Name: webgrunt
Nov 10, 2009
0
In general, the time to buy stock is before the companies start making gobs of money, which usually means before they're hated. Microsoft was one exception because their spectacular rise continued for so long.
