Unusual investing strategies

So I invited a few people to Freetrade and encouraged them to invest.

One of the people I invited took the stance that they were “only going to invest in fashion companies”. When I asked them the reason why they took this rather unusual investing strategy they said “because fashion companies are cool”. I reminded them it’s a good idea to diversify their portfolio and left them to their investment journey. I’ve also heard someone refuse to invest in crypto because “it is imaginary”

To each their own. Nevertheless their quotes got me thinking what are the most unusual/different investment strategies you have heard people engaging in?

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I don’t think its that bad as a start point, its basically somebody picking a sector they love and working with it. But you’d have to be very good at selection to make diversifying unnecessary as you say

I’ve heard of this unusual strategy called “value investing”…

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$BECKY index is a collection of stocks which a Basic young female would buy products from. i.e Apple, Starbucks, Disney. It’s outperformed the S&P500

Someone actually maintains this index and it has some popularity for Robinhood investors

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Yes diversification is quite important. No idea if fashion was an area they loved or simply thought that was going to be an area where they make a lot of money.

Lol.

why is it called the $Becky Portfolio. Is it simply because Becky was considered the name of your average female American?

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Dogs Of The Dow is an interesting one. Despite all the advice that chasing dividend yield is a bad idea.

You just invest in the 10 Dow stocks with the highest yield. Historically it has significantly outperformed the Dow Jones index as a whole.

I know some people use a similar strategy on the FTSE

However, It has been a bad year for this strategy because of all the dividend cuts due to Covid

Is crypto not imaginary then?

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The single most annoying one I’ve ever seen first hand is a good friend of mine who traded ex-dividend stocks simply to get the dividend and then move on to the next - he managed to make it work for a long time (which is still beyond me) but admitted that it was simply too much work to be viable over the long term.

Actually having a strategy & sticking to a strategy certainly fall into the ‘unusual’ category these days. But thats just my cynical nature talking

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Even if it is (and this can lead to a large philosophical debate as to the reality in which we live) I still don’t think that’s a good enough reason not to invest in cryptocurrency. Had we all jumped on the crypto bandwagon at the start I imagine a fair few of us would be “imaginary” millionaires/billionaires

My strategy is do as much research as possible from a variety of sources and make prudent investments from that research. The problem is that there is just so much research all competing against one another for your money. I think the next big thing is going to be an algorithm that compartmentalises all that stock and share advice from all those sources. I don’t think my strategy really counts as a strategy to be fair.

The annoying thing is I first heard about Bitcoin when it was still feasible to mine them on a home PC but I couldn’t be bothered with it

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I think it is strong for someone to invest in what they love and are knowledgable about but I’m not sure the OP was suggesting this person had knowledge but at least desire. But yes, as everyone has noted including the OP, diversifying is so important.

One I heard was to only buy what you currently own or use.

I. E. If you drink coke everyday (please don’t) but then buy coca cola

If you shop at asos buy asos stock

I think that can work for identifying new companies, ie a new restaurant chain that’s always busy or a new fashion retailer that’s got good clothes

Exactly my point. This was not a sector the person had knowledge of, but merely one that they had a desire to invest in without any diversification. Again there is nothing wrong with this. I just thought it was an unusual strategy given that just because a company is “fashionable” (pardon the awful pun) doesn’t mean it will make a good investment.

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Likewise. I thought cryptocurrency would never catch on. How wrong I was.

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I’ve heard someone mention this one to me.

You can still diversify, but if you find yourself and friends using a new company a lot it may be that you can get in early on an up and coming growth prospect. I wouldn’t throw your whole life savings on it though