How Shopping and Fashion can Make You Rich

If you bought stocks of the stores you go to or brands you just have to have, you’d probably be much richer than you are now (even if you bought on sale or with a coupon). When a store or brand makes a lot of money, do they thank you with extra discounts? Probably not. Its the company and the stock holders who share pieces of the money pie, and it’s very delicious. Get this: I think shoppers and fashionistas have the perfect skills to make money in the stock market. It’s all about finding great deals and trends of what’s hot and what’s not, instincts that all great shoppers are born with.

The stock market is nothing more than a big shopping mall. The companies whose things you buy and where you shop have stocks, so you can own a piece of the companies that make your favorite things or where you love to shop.  The companies that are in style see their stock price grow, sometimes two or three times! That means you could’ve doubled or tripled your money, much better than those 10, 20, or even 50% discounts eh? To make this kind of money in the stock market, you have to buy the stocks on sale and the stocks that you know will be in style later on.

You want to get in on the trend setters, not the stuff that’s already hot. Like with fashion, the stuff that’s hot now will soon be, like we said in high school, “soooo last week!” Stocks that are “soooo last week” often lose you money as people sell these stocks for a lot less, just so they can have money to go buy the next hot thing. So, if you know a brand or a product that is a must have, you could buy the stock before others get in on it, then you’d make a lot of money as people would pay you ridiculously more money for the stock when everyone “just have to have it.”

Every once in a while, the market throws big sales. This is when you see on the news that the stock market went down a lot. A lot of the time people just sell stocks for ridiculously low prices just to get rid of them, just like the clearance sale at your favorite department store. Does that mean these are bad stocks? Not necessarily. Sometimes they’re just trying to clear the store for the summer season, but you can get a great winter jacket at a low low price. By the time winter rolls around and everyone wants your jacket, people would buy your jacket for a lot more when you paid for it on sale. How awesome is that?

These strategies of buying stocks on sale and knowing what’s the next hottest thing is the basic idea for all of the stock market. It works stocks of all types of companies from retail stores to cars and even hospitals, but I’m going to focus on retail stores and fashion here. Why? Because most, if not all of the time, you shoppers set the trends for what’s hot. The money managers on Wall Street buying the stocks sit in their office all day and have no clue what’s hot. They can’t go to the stores and see what’s the coolest new items or what everyone is wearing. Most of these stock buyers are men who don’t know the first thing about fashion trends.

Whether if you see your local Target (TGT) store just jammed packed with people, or everyone you know just have to buy Abercrombie & Fitch (ANF) or American Eagle (AEOS), or how everyone has Coach (COH) handbags- I’d put the bet on you to notice these trends before that money manager in his office on Wall Street. Too late to start? NOT! Heck, what you’re buying now might just be the next hottest thing. Instead of just buying the clothes, jeans, or shoes, add the stock to your buy list too! All I ask in return is to let me in on what trends are hot so we can get rich together! Or just hit me up and I’ll try to find the right stock for the trend, because not all stores have stocks, or it’s hard to find their stock. Sometimes one store is owned by another store, bla bla bla.

If you bought a $24 stock of Starbucks (SBUX) along with that $5 cup of coffee last year, your Starbucks stock would be worth $36 (as of this post)! That’s a 50% increase while your bank account might have just gotten you less than 5%. That’s $12 more bucks you can spend this year on your Starbucks coffee. And who can’t tell Starbucks is just raking in the dough? We all can buy coffee beans at the supermarket and know it doesn’t cost anywhere near $5 per cup. Now when you buy that $5 cup of Starbucks coffee, you can feel better that you get some of that $5 back from your Starbucks stock.

**Disclosure: I own shares of Starbucks (SBUX) at the time of this post**


Mr. Lin is not a professional money manager and does not have the certification to give financial advice. This site is intended to discuss stocks and the stock market in a simple, intuitive way but in no way should be considered as official financial or investment advice.

Mr. Lin’s statements are based on his opinions at the time statements are made, and are subject to change without notice.

Past performance is not indicative of future results. Mr. Lin does not guarantee specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the site. The strategy or investments discussed may fluctuate in price or value. Investors may get back less than they invested.

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