What is The Next Burrito?
Simple and stupid can sometimes be good
One of the many reasons I love the stock market is that a little over 17 years ago someone could have been sitting inside one of the 489 Chipotles across the country and thought to themself' "I like this burrito chain" and tossed $5,000 into Chipotle and forgot about it. In return, they would have earned a 24% CAGR and turned $5,000 into more than $217,000 today.
Is this a stupid takeaway for investors? Absolutely. Do people sometimes make incredible money for having just as stupid approaches to the stock market? Absolutely. Does it happen to everyone? No. Is it a strategy to rely on? Probably not. I think that handles all the reply guys. Stumbling across the next Chipotle and blindly investing in it through no due diligence other than the perspective of the consumer is not a great investment strategy. There ought to be some consideration for the fact that holding onto a stock for so long is no easy feat. But it does happen, and it happens to ordinary people all the time.