Invest in What You Know
When you invest in what you know, using your real-world experience to guide your investment choices. Also known as the circle of competence, it means backing businesses or industries you understand firsthand—whether that’s the coffee shop you frequent, the app you use daily, or the healthcare trend affecting your family. This isn’t about guessing or following hype. It’s about spotting patterns others miss because you live them.
People who invest in what you know often end up with better results than those chasing hot stocks. Why? Because they notice changes early. Maybe your favorite brand starts running out of stock online. Or your gym adds new equipment and raises prices. These aren’t just life details—they’re signals. Companies like Shopify and Square didn’t become financial powerhouses by accident; they built embedded lending and payment systems because they saw how small businesses struggled to get cash. That’s the kind of insight you can turn into an investment. And when you pair that with smart tools like GARP investing, a strategy that finds growth stocks trading at fair prices using the PEG ratio, you’re not just lucky—you’re disciplined.
But knowing your industry isn’t enough if you don’t protect your money first. That’s why emergency funds, a cash buffer for unexpected costs, come before any stock purchase. Whether you’re a freelancer with variable income or a salaried worker, having $1,000 to $2,000 saved keeps you from selling investments at a loss during a crisis. And once you’re ready to grow your money, understanding how qualified dividend income, dividends taxed at lower rates than regular income works helps you pick stocks that keep more money in your pocket. You don’t need a finance degree to use these ideas. You just need to pay attention—to your life, your spending, and the companies you already trust.
What You’ll Find Here
This collection brings together real strategies that connect personal insight with smart investing. You’ll see how to use the PEG ratio to avoid overpaying for growth, how tax lot management can save you thousands, and why even small savings habits make the biggest difference over time. Whether you’re starting out or refining your approach, every post here is built around the same idea: your everyday knowledge is your greatest investing advantage. Let’s turn what you already understand into what you can grow.
