I'm making this post to see if there's a flaw in my thinking but I am starting to see there's no point in investing in multiple stocks (aside from diversification).
Context:
This morning I was looking at my watchlist (companies I understand and like and plan to invest in.)
TESLA (Low of $200 can go up to 400, potential for 2x a lot of room for growth due to innovation)
NIKE (At $90 potential for recovery to $180, 2x potential, pretty much dominates sports wear ) Why even consider adidas pff, I don't see them getting near Nike
META (Owns the big platforms, if the metaverse is the next big thing in 10 years, then huge gains but from it's current low of 130 and prev high of 380, almost a 3x potential!)
EBAY (I have a fondness to this company, its warm household name, I see them trying to innovate, currently at $40 potential for 2x from its $80 high)
Now, META and TESLA could have huge returns their business models seem to be innovation so who knows how big they could grow.
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But when looking at Nike and eBay, both companies I really like, I thought, what's the point investing in ebay if Nike can also generate a 2x return and is more likely as it has more dominance in its market compared to ebay who has more rivals?
So initially I wanted to buy all 4 but now I am ruling out ebay simply due to my thought process. ^
Would love to know if that's a reasonable way to pick stocks or if there really is a flaw to my thinking, thanks!
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